Russian Tax Amnesty Bill To Be Tabled In Autumn

by Tatiana Smolenskaya, Tax-News.com, Moscow

30 June 2005

A new tax amnesty bill aimed at persuading Russians to repatriate money held abroad is to be put before the Russian lower house of parliament, the State Duma, sometime in the autumn, according to Russian Finance Minister Alexei Kudrin.

The revelation came following a round table discussion between lawmakers and ministers on Tuesday, at which it was decided that individuals could repatriate undeclared income earned earned prior to January 2005 without fear of recrimination by the state. However, tax will have to be paid on the repatriated funds at the standard income tax rate of 13%, and monies must be paid into a Russian bank account.

At a meeting with key ministers on Monday, President Vladimir Putin also indicated that satisfactory progress is being made on the drafting of several new bills which are aimed towards improving tax efficiency. He added that the Duma has also approved bills concerning profit tax and abolishing inheritance tax.

In his annual state of the nation address to parliament in April, Russian President Vladimir Putin urged the tax authorities to cease menacing the business community with claims for back taxes, in a message designed to reassure foreign businesses that their contribution to the Russian economy is welcomed by the government.

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