Finance Ministry: Businesses will be required to pay previous taxes for three years after moving to the regions
Russia has decided to limit business registration in regions with low taxes. About the measures developed by the Ministry of Finance to combat tax dumping reports RBC.
Deputy Finance Minister Alexey Sazanov proposed measures to combat the nominal migration of companies and individual entrepreneurs (IE) who work under the simplified taxation system (STS). According to the amendments, businesses that move to regions with a reduced STS rate will continue to pay taxes at the same rate for three years.
“Such changes are aimed at preventing the receipt of unjustified tax benefits through the re-registration of businesses in other regions,” the Ministry of Finance explained the initiative.
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