16.10.08

Russia's Ministry of Finance (MinFin) is against the restoration of profit tax benefits for investments, according to deputy minister Sergey Shatalov. "This is an absolutely wrong idea. We ended these benefits and, of course, will not be returning to them," he stated. "The tax benefits assumed that all investment expenditures were incurred twice." 

Abolished in 2002, the benefits allowed for 50-100% of profits that were redirected to investments to be free from taxation. The benefits were adopted to stimulate investment and economic development.

Shatalov also stated that Ministry was considering other proposals that are currently in various stages of development, including reforms of amortization.

"It is possible that we will increase amortization write-offs for some tax groups," he stated.

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