The Russian Federation complicates the collapse of Western companies with another “exit tax” – mass media
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Russia plans to introduce a new tax for companies that want to expand their business in the country – in addition to the requirement to sell assets at a 50% discount and obtain government permission to leave the country.
It is reported Bloomberg citing informed sources.
According to the plans, the tax on excess profits, which is being introduced in Russia, will also apply to those who are preparing to leave the country. According to the interlocutors, this tax may also be included in the price negotiated within the framework of the agreement to exit the company.
There will be no exceptions for individual companies, because the Russian budget needs money, the interlocutors of the publication clarified.
The excess profits tax, which will not affect oil, gas and coal companies, aims to raise an additional 300 billion rubles ($3.7 billion) by levying 10% on excess profits made in 2021-2022 compared to the previous two years.
Although such a tax will not come into force until 2024, companies have the opportunity to pay it already this year at half the rate. Enterprises whose profits exceed 1 billion rubles are subject to taxation.
If all companies that are obliged to pay the tax decide to pay it early with a discount, Russia will receive 300 billion rubles already this year, which will allow it to spend this amount without increasing the budget deficit. According to forecasts, this year the Russian budget will have a deficit of 2% of GDP.
This year, Russia is also looking for a way to contain the impact on the ruble by imposing a limit on the purchase of the currency by foreign companies leaving the country to reduce its exposure to the ruble.
If the volume of asset sales by foreign companies approaches last year’s figure of 15-20 billion dollars, the aggressor can additionally collect up to 150 billion rubles in 2023 from the introduced mandatory contribution, Bloomberg Economics estimates.
We remind you:
So far, about 2,000 foreign companies have submitted applications to withdraw from the Russian market for approval by the regulator, but it will only take at least 8 years.
Recently, every Western company that wants to exit the Russian market and sell its assets, obliged make a direct contribution to the budget of the aggressor state. Until March, companies leaving Russia could choose between a “voluntary contribution” to Russia’s budget, which amounted to 10% of the sale price, or agree to defer payment from the sale for several years.
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