When leaving the Russian market, it will be necessary to pay 15% of the company’s cost to the budget
At the moment, the law obliges companies to pay only 10% of half of the market value of the company’s assets. Now the percentage will increase to 15%, which will complicate the exit procedure – the new law indicates that this percentage is paid from the full value of all company assets. The bill applies only to residents from unfriendly countries who previously conducted business on the territory of the Russian Federation.
The innovation is also related to the March 2023 law. Foreigners and foreign companies from unfriendly countries are obliged to sell companies at a discount of more than 90% – this significantly affects the benefits of the transaction. The update of the law already in force at that time suggests that now less than 10% of profits will remain in the hands of residents from unfriendly states.
The new version of the law was proposed by the Ministry of Industry and Trade, one of the main participants in the government subcommittee that authorizes transactions with foreign persons. According to experts, the other participants are also likely to be guided by this decision.
You may also be interested
- The Central Bank is taking measures to carefully regulate the securities market
- The Central Bank of the Russian Federation approved the forms of digital ruble account contracts and new penalties for credit institutions
- The Central Bank will make it easier for foreigners to open bank accounts
- The possibility of one-day registration of LLC
- Understanding the Wholly Owned Subsidiary Company
- Mastering Intercompany Fund Transfers: From Parent Company to Subsidiary