6 Feb 2019 18:04

Capital amnesty could be extended by at least a year - Putin

MOSCOW. Feb 6 (Interfax) - Russian President Vladimir Putin has suggested extending the voluntary declaration by individuals of property, assets and accounts abroad, or the capital amnesty, by at least a year.

The second stage of the amnesty was due to expire on March 1, 2019.

"It must be acknowledged that it was flaws in national jurisdiction, and insufficient guarantees for the protection of private property that forced many entrepreneurs to register their assets abroad and remove those assets. As you know, we provided for a capital amnesty, which lasts until March 1, 2019. Moreover private individuals are exonerated from liability for a number of violations of economic, currency and tax legislation. My colleagues and I have discussed the situation that is emerging in this sphere and we think the capital amnesty for citizens who transfer their money to Russia and also who register their businesses in regions with special legal conditions [special administrative regions, SAR] could be extended by one year, at least," Putin said at the Business Russia forum.

He also said he considered it would make sense to exempt, for one year, citizens from the payment of personal income tax on profit made by foreign companies they control on the condition they become Russian tax residents in 2019.

The president emphasized the importance to the national economy of implementing national projects, which must become an impetus for Russian business, "for quick mastery of cutting edge technologies, production of new goods and services, so that companies can strengthen their positions not only in the national but also on the global market, participate actively in global production chains." To this end, the focus must be on the most important tracks: a sustained reduction in barriers and expansion of entrepreneurial freedoms. "The quality of the business climate must be consistent with the scale of the challenges that face Russia," he said.