17 Mar 2020 17:26

MinFin soon to enhance tax respite mechanism, govt will decide on its application to specific companies and sectors

MOSCOW. March 17 (Interfax) - The Russian Finance Ministry will soon enhance the mechanism for tax respite with regard to the current situation; the government will determine the specific companies and sectors to which this rule will apply, Deputy Finance Minister Alexei Sazanov said.

"Now, companies go to the tax authorities, and the tax authorities make a decision on respite or deferral of tax payment. There is a closed list of grounds for when this is granted," Sazanov said.

"Just now we're working on options, the matter of expediency of enhancing this mechanism to make it so that in light of the current circumstances it can be applied to companies. There are certain restrictions there that don't allow particular companies to make use of respite, and consequently if such a decision is made, we'll improve the mechanism for granting respite to make it so that companies that have suffered one way or another due to the current situation can apply for respite," he said.

"I'll stress that this isn't a mechanism for specific sectors but a general one for all tax payers. A universal norm, and how it will be managed the government will decide," Sazanov said, adding that the government will also decide on the period for granting respite.

The Finance Ministry will decide in the coming days whether it will introduce amendments to the Tax Code or whether a regulatory act of the government will be sufficient for enhancing the mechanism.

"This will be respite from tax payment, which is envisaged in Article 64 [of the Tax Code]. We are now working on whether it's worth changing Article 64 to make it so that in the current situation we can somehow adapt the mechanism for granting tax payment respite. This matter is now being worked on. If necessary, we will promptly prepare corresponding amendments to the tax legislation," he said.