No official support for a 35% profit tax for foreign businesses that left Russia
The government failed to support a bill to introduce a 35% profit tax for foreign companies that left Russia which would be payable when they return. The bill was introduced last spring by a group of lawmakers led by Sergei Mironov, chairman of the Just Russia – For Truth party. "The relevant federal ministries considered that the introduction of tax and duty rates, as well as benefits on such payments, depending on the taxpayer's country of origin is discriminatory," Kommersant writes, citing the government's opinion on the initiative.
The standard income tax rate in Russia starting in 2025 is 25%.
The bill drew no support from the Finance Ministry and the Economic Development Ministry, which pointed out that the Russian Tax Code explicitly states that "taxes may not be discriminatory or applied differently based on social, racial, national, religious or other similar criteria".
"Multinational corporations have huge financial and marketing capabilities, and after returning to Russia they may start dumping or engage in unfair competition, and our businesses risk losing the advantages they gained in the face of the sanctions," was how Mironov explained the rationale behind the initiative.
According to estimates by the Center for Strategic Research, 1,502 out of 1,645 foreign companies left the Russian market, either fully or partially. The CSR compiled a "reputational portrait" of the foreign businesses that left. Almost one in four (23%) of such companies left the country irresponsibly, which actually slams the door shut for their return to the Russian market. At the same time, about 37% of the companies that left showed a "responsible approach," and for businesses such as these, a return would be possible if there is a sectoral need.