Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Corporate Tax Rate May Be Cut to 20%

Russia may cut its corporate profit tax rate to 20 percent from 24 percent as part of a three-year tax policy plan, Deputy Finance Minister Sergei Shatalov said.

The government may also increase the tax on extracting gas to make up for the resulting revenue shortfall. That rise "is being very carefully calculated with Gazprom, the Economic Development and Trade Ministry and the Industry and Energy Ministry," Shatalov said Thursday. "A mistake is very dangerous here."

The Cabinet will discuss the Finance Ministry's three-year tax plan Friday. Shatalov said the total tax burden in Russia will not increase through 2010 and might in fact fall. He stressed that the final decisions on which tax rates would be cut and by how much have not been made.

Shatalov reiterated that the ministry opposed lowering the value-added tax.

"This is the single tax that is not connected to oil and gas" and it should not be touched, Finance Minister Alexei Kudrin said Wednesday.

The excise tax on oil products will not increase next year. It may be changed in 2009 or 2010 to tax lower-grade fuel at a higher rate than higher-grade fuel, Shatalov said.

VAT, the tax on extracting mineral resources, the corporate profit tax and excise taxes are among the greatest contributors to the budget's revenue, Shatalov said. The others are personal income tax, the unified social tax and customs tariffs.