23 Oct 2009 12:10

Profit tax rate unlikely to rise in coming years - Shatalov

MOSCOW. Oct 23 (Interfax) - Russia's decision to cut the profit tax rate to 20% from 24% effective this year was approved "for the long term," Deputy Finance Minister and State Secretary Sergei Shatalov said .

"The decision to reduce the rate to 20% was obviously take in full seriousness and for the long term. It is unlikely to be reconsidered in the foreseeable future," Shatalov said at a conference on Friday.

In the post-crisis global economy, nations will compete on profit tax rates. "It is a notable trend. Eastern Europe embarked on that path several years ago," he said.

Profit tax rates in the range 16%-20% "are no longer exotic. It's the evolving rule," he said.

"Russia probably won't want to lose the competitive advantages that we have," he said.