Business is ready to pay windfall tax early if new law starts in 2024, but wants a discount

MOSCOW, March 16 (Interfax) - Business is ready to pay the windfall tax in advance, if it legally comes into force next year, but would like the right to a discount if they do.

The one-time fee from additional business profits for increases in 2021-2022 over 2018-2019 is expected to be formalized by amendments to the Tax Code until they are submitted to the State Duma. Formally, the amendments would come into force on January 1, but the money (the Ministry of Finance is counting on about 300 billion rubles) will probably be requested from taxpayers ahead of schedule, in Q4, a source familiar with the discussion told Interfax.

Discussing the windfall tax with Finance Minister Anton Siluanov during the RSPP congress on Thursday, Alexander Shokhin, the head of the RSPP, the Russian Union of Industrialists and Entrepreneurs, recalled the position of business, which is that "the easiest way is to differentiate profit tax based on the margins of the business." "It seemed to us that this idea would easy to administer and fair in its execution. The only objection came from the Finance Ministry and legislators that the tax could not be introduced in the middle of the financial year. Well, there was this idea of a lump sum payment. In general, these issues could probably be resolved; it might be possible to introduce amendments starting in January 2024, but allow companies the right to make advance payments, but at a discount," Shokhin said.

"There are options aimed not at avoiding additional payments, but at getting even more pleasure from the fact that the scheme is transparent and easy to administrate," the head of the RSPP said.