Matvienko proposes tax hike on profits transferred offshore
MOSCOW. Oct 5 (Interfax) - Russian Federation Council Speaker Valentina Matvienko has proposed significantly increasing taxes on profits generated by companies in Russia and then transferred offshore.
"I think that we should make sure that the tax system also be motivating. Just for the sake of consideration: large companies that transfer funds offshore," Matvienko said during parliamentary hearings on the budget in the Federation Council on Monday.
"I am only in support of everything being in line with the law, as is the case in a market economy, but if they put profits into investment, in development, in creation of new production, new jobs, then profit taxes could even be reduced. But if they transfer offshore substantial funds generated here, in Russia, then taxes on such funds should be hiked significantly, as is the case in many European countries - in France and others," she said.
In her opinion, in this case the tax system would be stimulating, motivating, and funds will be invested in development.
She recalled the situation with Nornickel . "Look at the volume of dividends being paid to shareholders in recent years. It exceeds the volume of the whole budget of the vast Krasnoyarsk Region. At the same time, funds for modernization, for environmental protection are very modest, Matvienko said.
"We probably need to think here about how to regulate this situation in order to, of course, stimulate investment, to act in line with the law, but this situation is not normal," she said.
Finance Minister Anton Siluanov commented on Matvienko's proposals while talking about new tax measures for 2021, including in the mining sector.
"A leveling out of MET rates on certain solid minerals is being envisaged since these rates are currently at unprecedentedly low levels. Actually, Nornickel, which you mentioned, our rent level in solid minerals is around 1% and less than 1% of revenue. We are currently proposing hiking it [the MET rate] 3.5-fold at least to a level which is a little less than is common in global practice and even lower than in other sectors which produce mineral resources and the revenue level is significantly higher," the minister said.
