Invest in Russia — invest in Russian regions!
All analytics

Key tax changes in 2019. Tax amendments in 2018

Analytical digest
14 February 2019

In the publication, KPMG acknowledges that the year 2018 was fairly rich in terms of the number of innovations: an investment tax deduction for the profits tax was introduced; general provisions on special administrative regions — «Russian offshore zones» — came into force; the federal tax benefit for movable property was abolished.

Among other things, the authors comment on such changes as higher accessibility of the declarative procedure for a VAT refund, development of the «actual beneficiary of income» concept, clarification of the rules on controlled foreign corporations (CFC). Also, effective 1 January 2018, a new Customs Code of the Eurasian Economic Union (the EAEU Customs Code) came into force. The new EAEU Customs Code is innovative and significantly simplifies and expedites customs transactions.

The authors believe it is already clear today that we can expect no less and maybe even more far-reaching changes in 2019: a number of amendments to the Tax Code of the Russian Federation will come into force from 1 January 2019 — a higher VAT rate; a new procedure for imposing VAT on e-services; abolition of the tax on movable property; the introduction of a new «oil» tax — tax on additional income from hydrocarbon production (additional income tax — AIT), and many others. Also, starting from 1 January 2019, Russian regions lose the right to set reduced profits tax rates, new rules are introduced for calculating the property tax if the cadastral value has been contested, and the majority of Russian domestic transactions will be exempt from transfer pricing control.

Anlytics on the topic

All analytics
30 August 2021
The Far East: New Challenges And Opportunities

The pandemic has sent shockwaves through the global economy, and has delivered a clear message to all nations: there can be no future without international cooperation, digitalization, and high-quality healthcare. It is not enough to possess rich reserves of natural resources — steps also need to be taken to boost investment initiatives and enact positive social change. Today, these aims are beginning to be fulfilled with the introduction of advanced special economic zones and other incentives in the Russian Far East.

Analytical digest
17 April 2019
Russia through a lens

The 13th issue of Russia Through a Lens, the analytical journal produced by the Deloitte Research Centre in Moscow, falls under the Research Centre’s monitoring activities.

22 May 2018
A taste of destiny

How a long-time Swiss winemaker created a premium Russian wine.