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. Last Updated: 07/27/2016

Amended Securities Law Approved by Parliament




The State Duma passed in a third and final reading amendments to a law saying companies could deduct financial market transaction losses from their taxable profits.


The law, aimed at stimulating trade in the fledgling markets, defines losses from operations with securities, options and futures as the difference between sale and purchase prices, including transaction charges.


For shares and bonds traded at exchanges, taxable profits may be reduced by losses from sales at a price higher than the middle price of trading.


It was not clear how that mid-price would be established or over what period.


For operations with futures and options contracts traded at an exchange and struck with the aim of hedging risk rather than speculation, taxable profits may be increased by transaction revenues but reduced by losses.


The deal will be considered as intended to hedge risks if it is registered as such in accordance with an order set by the government.


If a trader speculating on futures and options contracts loses more than he earns, he will not be able to deduct the losses from tax.


Russia is overhauling its tax structure, cutting some rates, raising others and simplifying the system to improve poor collection rates that have jeopardized budget plans and contributed to a financial crisis.


The State Duma, or lower house of parliament, is under pressure to approve crisis measures to pave way for an $22.6 billion International Monetary Fund-backed package of support loans.