All news

Russia to get tens of billions of dollars from de-offshorisation of economy

MOSCOW, December 12. /ITAR-TASS/. Russia will get tens of billions of roubles from de-offshorisation of its economy, Finance Minister Anton Siluanov said.

“I think we can talk about tens of billions of roubles,” he said.

The minister noted that a set of measures was being prepared, covering three areas. First, companies will have to pay taxes in Russia if they run their operations in the country.

Second, access to government contracts and subsidies should be limited for companies that do not disclose their beneficiaries. “It is an absolutely correct decision that companies should disclose their owners so that we knew where they are registered and pay taxes,” the minister said.

Third, controlled foreign companies that do not pay dividends to their Russian parent companies and thus make it impossible to tax these amounts.

“If such a company does not carry out its activities and does not pay dividends to the parent company, we should naturally hold such a company accountable and compute taxes depending on the activities controlled by the foreign company,” Siluanov said.

The Finance Ministry is drafting legislative initiatives to de-offshorise the economy and hopes that relevant initiatives will be submitted to the State Duma, lower house of parliament, in the first half of 2014.

In his annual Address to the Federal Assembly on Thursday, December 12, President Vladimir Putin said de-offshorisation of the economy should become a key task next year.

“Incomes received in offshore zones should be taxed by our rules, and tax payments should go to the Russian budget. We have to think about how to take this money,” the president said.

Companies registered in offshore zones will not be entitled to state support, including loans from Vnesheconombank, and government contracts. “In other words, if you want to earn money in Russia, register here,” he said.