Russia: Tax relief measures (COVID-19)

Russia: Tax relief measures (COVID-19)

Economic and tax measures to support businesses affected by the coronavirus (COVID-19) pandemic include measures from draft laws or provisions that have already been enacted.

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Among the measures to support businesses, the government intends to develop a list of industries that have been affected by the COVID-19 crisis and then anti-crisis measures will be proposed. Small and mid-sized businesses operating in these identified industries will be allowed a six-month tax deferral for all taxes (excluding value added tax (VAT)) and social insurance payments (but only for micro-enterprises).

Another measure would allow for a decrease of the social insurance rate from 30% to 15% for salaries exceeding the minimum statutory wage.

Other tax measures intended to provide relief from the effects of the COVID-19 pandemic include:

  • A 13% rate of income tax on interest accrued on deposits exceeding 1 million rubles (approximately U.S. $12,700)
  • Repeal of tax benefits on withholding tax under applicable income tax treaty measures, on payments of dividends from Russia entities to companies located in foreign jurisdictions (in effect, the withholding tax rate for dividends in Russia will be 15%)
  • Tax holidays to support aviation and tourism industries
  • A moratorium on tax audits until 1 June 2020


For more information, contact KPMG’s Global Head of International Tax:

Rodney Lawrence | +1 (312) 665 5137 | rlawrence@kpmg.com

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

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