Putin Orders Govt to Study Deferred Tax Deduction
Russian President Vladimir Putin has instructed relevant agencies to refine the mechanism for allocating business costs for research and development activities to expenses when calculating corporate tax.
Consensus
- President Vladimir Putin instructed the Russian government to study the introduction of a deferred investment tax deduction.
- The mechanism is intended to support capital investments in high-risk, high-tech sectors.
- The pilot program is planned for the pharmaceutical industry.
- Companies would issue special investment tax certificates, which would serve as collateral for loans.
- Maternal companies would assume risks if projects fail to generate profit.
- The tax deduction could amount to up to 50% of investment volume over a five-year period.
- The idea was proposed by the head of 'Delovaya Rossiya', Alexey Repik.
- The government is to assess risks to the budget and banking system.
- Putin emphasized the need for careful design to protect public finances and ensure business support.
Points of divergence
- Putin suggested developing rules for mutual investment funds (PIFs), stating that there is currently no stable regulatory framework, and emphasizing the need to protect investors' funds. — vedomosti
- The Ministry of Finance considers the idea feasible but stresses the need to define limits and assess risks to the state budget and banking system. — interfax
- Putin stated that the practice of using deferred tax deductions already exists, though he did not specify where. — vesti
Coverage (7 sources)
- Authorities will clarify the mechanism and criteria for allocating R&D expenses to costs — Интерфакс
- Putin joked, rephrasing a saying about risk and champagne — Вести
- President of the Russian Federation instructed the government to work out deferred FINV — Интерфакс
- Putin orders to work on the topic of deferred investment tax deduction — Вести
- Putin proposed developing rules for investment funds — Ведомости
- Putin instructs the government to work out deferred investment deduction — Коммерсантъ
- Putin instructed the cabinet to work out the deferred investment tax deduction — Ведомости
Key entities
- Russia
- Vladimir Putin
- Business Russia
- Moscow
- INTERFAX.RU
- Ministry of Finance
- Ministry of Finance
- Alexey Sazanov
- Titan
- FINV
- Mikhail Sutyaginsky
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