Key focuses of the tax policy for 2021-2023

On October 10, 2020 the Russian Ministry of Finance published information about the key agenda of the fiscal policy for the next 3 years.

Among other things, this document describes the tax areas which require amendment and therefore should be subject to the special attention of the state authorities during the next years.

The list of issues to be reviewed includes:

·       Expansion of the list of insurance expenses which can be deducted for corporate income tax purposes;

·       Extension of the limitation of the maximum amount of previous years losses, which can reduce the tax base for the current period;

·       Unification of the approach how the supplier's services location is determined for VAT purposes (in all cases at the location of the customer);

·       Voluntary tax registration of any foreign company via the online portal "VAT-office". Previously, this option was available only to the suppliers of e-services;

·       Cancellation of property tax exemption for movable property and simultaneous reduction of the property tax rate;

·       Adjustment of the legal and tax parameters for companies working in special administrative regions ("SAR").