The Ministry of Finance of Russia intends to abandon the idea of reducing income tax up to five percent for residents of the so-called “Russian offshore” – special administrative districts (SAR) in Kaliningrad and Vladivostok. About this with reference to the words of the Deputy Head of the Office Alexey Sazanov write “Vedomosti”.
According to him, the problem is that Russia has joined the global tax initiatives (TWO-PILLAR Solution), and they contradict such an initiative. As Ey Marina Belyakova explained, under pressure from this circumstance, it is better not to try to introduce benefits that can compromise the country.
In Russia, dividends in the general case are taxed at a rate of 13 percent, while complying with certain conditions it goes to zero. The Ministry of Finance decided to reduce up to 5 percent of the bid on dividends and the bid for all other income. However, Pillar 2 mechanism assumes that an effective income tax payment rate should be 15 percent.
Thus, the SAR resident, which paid taxes at a rate of 5 percent, could detach the tax in another country through the headquarters. And in this case, the benefit itself does not make sense, and in addition, the country that issued it looks like an intruder.
In the current form, the draft law on conditions in SAR for international holdings provides other changes. Including the cost of entry – investments in the amount of 300 million rubles in the construction of infrastructure in the region for three years and rental office in 100 square meters with a number of employees at least 15.
This is the second change in the project to which the Russian authorities are coming due to international rules. Earlier it became known that not only international companies with Russian roots may be allowed to be allowed in the “offshore” (it is done to return to the country), but also the current residents. Otherwise, Russia can get a malicious jurisdiction status (Harmful Tax Regime)