MOSCOW, August 4. /TASS/. Russian President Vladimir Putin signed a law imposing a 10% tax on excess profits for large companies. The document was published on the official website of legal information.

The bill will go into effect on January 1, 2024, and the tax must be paid by January 28, 2024. It will be allocated to the federal budget and will be one-time. The tax is expected to generate 300 bln rubles ($3.12 bln) in revenue.

The law, in particular, imposes an excess profit tax on enterprises with arithmetic average profits above 1 bln rubles ($10.43 mln) in 2021 and 2022. The tax base will be determined as the difference between the arithmetic average of profit for 2021-2022 and 2018-2019, with a 10% tax rate.

It also specifies a number of companies that are exempt from the list of excess earnings tax payers. For example, companies in the oil and gas industry, as well as coal mining, are excluded from the list of payers, as well as small and medium-sized businesses, organizations paying the unified agricultural tax, Russian organizations established after January 1, 2021 (except those formed as a result of reorganization), and foreign organizations that began operating in Russia through permanent representative offices after January 1, 2021.