Government removed tax on dividends from amendments to the Tax Code

The government agreed to exclude from the amendments to the Tax Code the provision on increased income tax for those companies that have spent most of it on dividend payments over the past five years, rather than capital investments. This proposal was made on September 23 by the Russian Union of Industrialists and Entrepreneurs (RUIE) at a meeting with Prime Minister Mikhail Mishustin.

“Agree with the proposal of the meeting participants to exclude the provisions of the draft law, which provide for an increase in the corporate income tax rate in the event that profits are used to pay dividends,” reads the list of decisions following the meeting, which is published on the government’s website.

On September 23, the president of the Russian Union of Industrialists and Entrepreneurs, Alexander Shokhin, said that the issue of the retrospective tax on dividends has been postponed until 2023. According to him, Prime Minister Mikhail Mishustin, together with the Ministry of Finance, agreed that “he is still damp”.

Earlier, Deputy Finance Minister Alexei Sazanov said that the department is working out several options for businesses to take less profit to offshores and invest more domestically. One of the options under consideration provided for an increase in income tax from 20% to 25-30% for those who abuse the withdrawal of funds abroad.

About the meeting on taxes – in the material of “Kommersant” “Justice in Half”.

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