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Federation Council approves bill on corporate tax increase

Extra earnings from the corporate increase are expected to be about $17.85 bln in 2025

MOSCOW, July 10. /TASS/. The Federation Council, the upper house of the Russian parliament, approved at its meeting amendments to the Russian Internal Revenue Code.

In particular, the document provides for the increase of the corporate income tax from 20% to 25%. "It is proposed in conditions of the sanctions pressure on the national economy and for purposes of ensuring the fair fiscal burden to increase the general fiscal rate of the corporate income tax to 25%, keeping the effective preferential mechanisms," accompanying papers to the document indicate.

Extra earnings from the corporate increase are expected to be about 1.6 trillion rubles ($17.85 bln) in 2025. Additional receipts in 2025-2027 will be about five trillion rubles ($55.8 bln) according to the financial and economic rationale to the document.

The law also sets forth a federal investment tax deduction making it possible to reduce the corporate income tax amount to be credited to the federal budget by capital expenses made within the framework of investment projects included into a relevant list.

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