The Russian Government proposed some changes in the withholding tax, VAT, and excise duties
According to the amendments to the Tax Code of Russia, the following changes are planned:
- The government wants to assign the obligation to calculate and pay VAT when importing goods from EAEU countries to intermediary organizations from January 1, 2024;
- it is planned to increase excise tax rates on some types of alcohol from May 1, 2024, and index them for 2025 — 2026;
- it is planned to raise excise tax rates on tobacco, cigars, cigarillos, cigarettes from January 1, 2024, with subsequent indexation for 2025 — 2026;
- exempt from withholding tax or establishing a reduced rate for certain income paid to foreign companies abroad. This will be possible if, previously, no withholding tax was paid on this income or a reduced rate was applied under suspended contracts. The benefit will be valid if the actual right to income of the foreign company is confirmed and there is an absence of interdependence between the Russian organization and the foreign one. They want to extend the exemption to income paid by a tax agent from August 8, 2023. It is expected that the procedure will be applied until the end of 2025.