Russia's Prime Minister Vladimir Putin attends the 10th Congress of United Russia Party.
Photo: Valery Melnikov
| Other Photos |
 |
|
 |
The Profit Tax Is On Decrease
The profit tax will lower from 24 percent to 20 percent starting from 2009 in Russia, i.e. the companies will have roughly 400 billion ruble in addition at their disposal. Prime Minister Vladimir Putin announced that bailout action of government at the yesterday’s Congress of United Russia. The business will save another 100 billion ruble on the increase in depreciation premium to the tax that takes effect in 2009. For the enterprises, these novelties will set off more than a half of the increase in social payments that has been planned for 2010.
The key tax news of Vladimir Putin’s speech at United Russia’s Congress was slashing the profit tax from 24 percent to 20 percent in 2009. The tax will go down for the account of federal portion of that payment. Nowadays, the rate is split into two components – 6.5 percent of its amount goes to the federal budget and the regional budgets receive 17.5 percent. Therefore, the budget component will narrow to 2.5 percent from January 1, 2008.
In today’s size, the profit tax is the third in significance for federal budget. According to the Federal Tax Service, it accounted for 18 percent of tax receipts in the first half of this year. The severance tax led with 36 percent and VAT covered 31 percent.
Vice Premier and Finance Minister Alexei Kudrin publicly backed up the forthcoming material reduction in budget revenues. “These are the actions of anti-cyclic policy. With deteriorating market opportunities, you have to support your own real sector, so I view the reduction in taxes quite timely today,” Kudrin announced.
At the same time, the minister acknowledged that the budget will not only lose its surplus in 2009 but might even post the red ink of around 1 percent. In pre-crisis era, the Finance Ministry had proposed to slash profit tax as an alternative to VAT reduction, but the absence of resources for lowering fiscal burden has been always the firm standing of Kudrin’s subordinates since the start of financial turmoil.
www.kommersant.com
All the Article in Russian as of Nov. 21, 2008
|
|
|
