Federation Council approves law on specifics of taxation in new regions
The Federation Council upper house of the Russian parliament has approved the law on the specifics of taxation in the four new regions of the country, the Federal Tax Service (FNS) reported.
“The Federation Council has approved the government-proposed law on the specifics of taxation in the Donetsk and Lugansk People’s Republics and the Zaporozhye and Kherson regions,” the FNS said.
The document provides for phased integration of taxpayers from these regions into the tax system of the Russian Federation. Income taxes for them will be introduced in 2024, and cash register equipment is mandated beginning from 2025.
“Those who were living in those regions as of the date of their accession to the Russian Federation will avoid double taxation by paying taxes at the rate fixed for Russian residents throughout the year, regardless of the actual period of staying in the country. In addition to the existing opportunity to decrease the tax rate under simplified taxation from 6 percent (15 percent) to 1 percent and from 6 percent to 4 percent (for patent holders) there will be an opportunity to decrease them to zero percent in 2023 and 2024,” the FNS said.
The government was given the powers to determine other taxation specifics in the four new regions. For example, it will give an extra six months for sending notifications about the launching of the simplified taxation system and unified agricultural tax in 2023. The deadline for sending notifications has been pushed to June 30, 2023.
The government is lifting restrictions on the income tax to enable the use of the simplified taxation system in 2023-2024. It will also cut the volume of data that have to be reflected in the notification about the beginning of use of special tax treatments. The expenses during the previous period of activity under Russian laws will be taken into account.
“The government is considering the possibility to introduce a moratorium, until December 31, 2023, on fines for the residents who miss the deadlines for filing accounts or paying taxes. The relevant resolution will be prepared in the near future,” the FNS said.
The Lugansk People’s Republic, Donetsk People’s Republic and Zaporozhye and Kherson regions acceded to Russia on September 30, 2022, based on the results of the unification referenda.*i*v