The state Duma adopted the bill on tax exemption sanctioned citizens
The state Duma adopted in the third and final reading a bill that would allow sanctioned citizens to abandon the Russian tax residency. The parliamentary opposition did not support the bill. Voted 322 deputies, against — 85, one abstained.
According to the approved amendment to the tax law individuals targeted by the sanctions starting in 2014, will not be able to pay taxes in Russia, regardless of length of stay in the country if it is confirmed that in the same tax period was a resident of a foreign country.
By law, Russian tax residents are citizens on the state for more than 183 days in a year.
Of fraction of LDPR, CPRF and “Fair Russia” did not support the bill.
We will support the adoption of the law in the third reading, because this law is intended to provide material support to the richest citizens of our country — almost all of them in the list ForbesВладимир Zhirinovskyites LDPR
The Communist faction also stated that it will not uphold the law. “We have this law is not only not supported, but will vote against, said the Communist Valentin Shurchanov. — The oligarchs close to them, and the group of owners go under control of the Russian Tax code”.
This opinion is shared by the faction “Fair Russia”.
We believe this decision is unfair, unjust and wrong in relation to the Russian bugetare Chainlen of the party “Fair Russia”
The author of the bill Chairman of the Committee on budget and taxes Andrey Makarov (“United Russia”) has explained that the amendment would help to avoid double taxation to the citizens that own property in Europe and the USA, and pay those countries the taxes are forced in connection with the sanctions to permanently reside in Russia, becoming a tax resident of two countries.
The Deputy emphasized that if a citizen “pleads resident of the other state, he will pay income tax of 13%, and 30% (on income earned in Russia. — RNS), we are talking about increasing the tax burden, not decrease it”.
In addition, such a citizen will not be able to hide information about the controlled foreign companies (CFC) since 2017 Russia participates in the international agreement on the exchange of tax information, was pointed out by Makarov. The automatic exchange will work in 2018.
In Russia on undistributed profits of a CFC citizen pays 13%. However, not all countries have the mechanism of a CFC (for example, in the United Arab Emirates, Switzerland, Czech Republic and most offshore).
As a result, if a citizen is resident in such country and under the amendment will give up Russian residency, you will be able to avoid paying the tax altogether.
The list of the countries whose sanctions will have the right to withdraw from the Russian tax residency is to be determined by the government.
The Cabinet of Ministers supported the draft law.