Govt approves doubling expenses on Russian equipment purchases to reduce taxable base

MOSCOW. Dec 18 (Interfax) - The multiplier applied to expenses on purchasing Russian high-tech equipment for calculating the profit tax base has been increased from 1.5 to 2, Prime Minister Mikhail Mishustin said on Wednesday.

"These expenses are deductible at double the amount, rather than at 1.5 times, to reduce the tax base. This will leave companies adopting modern domestic production tools, including various types of machines, turbines, drilling rigs, geophysical instruments, compressors, electric furnaces, excavators, tunneling machines, as well as industrial robots and additive manufacturing systems for 3D printing, with more internal resources," Mishustin said during a government meeting.

The changes will take effect on January 1, 2025.

The list of equipment eligible for the increased multiplier has also been expanded to include products from the radio-electronics industry. Specifically, the list now includes communication and radar equipment, data storage devices, uninterruptible power supplies, modems and network traffic processing equipment.