16.06.09

On Wednesday, the Ministry of Finance published its three-year tax strategy  on its website. Restricting opportunities to minimize taxes is one of the top priorities of the new Russian Tax Policy of 2010-2012. With this goal in mind, a number of changes regarding tax  legislation and collection have been proposed.

For example, some of the proposed reforms will affect the transfer of an absorbed or acquired company’s future losses. The new tax strategy explains that the absence of restrictions  creates distorted market incentives to purchase inefficient businesses without subsequently developing them. The ministry suggests, for example, limiting the ability of unprofitable organizations to direct all of the profits they receive to liquidate their losses. As a result of this, starting next year,   a special procedure will be established in the tax legislation on transferring losses during reorganization. It would set limitations on the period of time the restructuring organization has to pay off its debts, as well as on the portion of its profit that can be used to do so.

In the short-term, it is suggested to increase the amount of interest that can be claimed as an expense and deducted from the profit tax base—up to twice the refinancing rate of the Russian Central Bank.

This measure will more than likely only be temporary and will extend until the end of the year. The Ministry of Finance said that next year it will be necessary to resolve the issue of the currently inadequate regulatory rules.

The Ministry’s publication also addresses the global financial crisis and the priority of Russia’s socio-economic development in the intermediate term. The official website of the Ministry of Finance highlighted a series of measures aimed at improving the sustainability of the national economy.

The goal is to establish an efficient tax system and hold the tax burden to where it currently stands.

On the one hand, fiscal policy will be aimed at countering the negative effects of the economic crisis; on the other hand, fiscal policy will be used to create the necessary conditions for restoring positive economic growth. Because of this, the most important factor in the tax policy will be to maintain balance in the budget.

Translated by Alinga Consulting Group.

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Source: «Банки.ру»