Package of measures for reforming taxation of transnational firms should come into force from 2023

© Interfax

The Russian government plans to sign an agreement on taxation of transnational companies in 2022, and the whole package of measures for its reform should enter into force from 2023, Russian Finance Minister Anton Siluanov said during a meeting of the administrative office of the Russian Union of Industrialists and Entrepreneurs (RSPP).

"We are now actively holding talks on a new package of measures for taxation of international groups of companies. This is about the G20, the finance ministers of the 20, and about the OECD. The process is actually at the active stage of development now, and it is planned that in 2022, next year, we should sign the corresponding agreement and adopt national legislation. Starting from 2023, the package for the reform of international groups of companies should enter into force," Siluanov said.

"This is also about it being clear where a company receives profit and how to tax companies that are transnational," he said.

Siluanov said a number of countries had already started introducing local solutions with regard to taxing such groups of companies, and that this had primarily concerned digital companies. "None of this has been of a systemic nature, though," he said. According to Siluanov, there are plans to discuss the finer points of taxation changes in this sphere with businesses during the meeting of members of the RSPP administrative office on Wednesday.

RSPP head Alexander Shokhin said in opening the meeting that it was not planned to discuss other issues of taxation policy with regard to business, for instance concerning additional taxation in the mining sector, on this occasion. "We agreed that we wouldn't discuss all the topics of taxation policy; for now, we won't be discussing the document on the main areas of taxation, customs tariff policy, which is currently in the State Duma. We will have opportunities there, albeit fairly compressed, for discussion in the State Duma committees, to express our suggestions," Shokhin said.

"We have a range of other pending issues; we are not going to bring them up now, including completion of the discussion on additional taxation of metal companies. I think here we will find more narrow working platforms for finishing these discussions," he said.