Return of some benefits to foreign businesses

New bills adopted by the government may abolish taxes on foreign business income if the activity is conducted in favor of Russia, and may also allow the application of reduced rates. At the moment, only Russian business has such an opportunity. The laws should mitigate the consequences of the cancellation of international tax agreements.

Agreements on taxation and property were previously suspended. The freeze arose due to an international economic conflict for individuals and legal entities. Now the Cabinet of Ministers has proposed to retain some of the benefits for foreign companies. It is proposed to exempt from income tax or, if possible, to reduce income rates if:

• These are funds from insurance claims under foreign lease agreements
• This is the percentage of income paid to export credit agencies
• These are payments for the possibility of using the software

The amendments should not allow a negative impact on the Russian economy.