Income tax increase for companies with dividends more investments will affect only future income

Finance Minister Anton Siluanov explained the system of increasing income tax for those companies that have invested in their development less than paid dividends in five years. According to him, the innovation will not affect the profits of the past years. “Indeed, there is such an idea, for this we have prepared the appropriate legislative decisions to still encourage enterprises to leave more money in Russia: invest in new projects, pay less dividends. Therefore, such amendments have been prepared, they are being discussed with business, ”said Mr. Siluanov at a briefing (quoted by RIA Novosti). He added that the measure will concern future, not past periods. Earlier, Deputy Finance Minister Alexei Sazanov said that the department is working out several options for businesses to take less profits 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. …

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