Articles

23.12.2017 Ъ
Sanctions To Be Granted Amnesty

Another amnesty of capital can take place in 2018; that is, entrepreneurs can declare their foreign assets subject to tax secrecy and exemption of all liability. This President’s offer to the business, never mentioned previously, was declared yesterday by Anton Siluanov at the United Russia party congress. “The timing is open for discussion, but I think it won’t be less than one year. The terms are probably the same as we did before, but it’s also negotiable”, the minister explained. “This is primarily related to medium-sized businesses and those entrepreneurs who have not taken up the previous amnesty offer, being afraid to reveal their account and business data, which may not always have been legal to the law enforcement authorities and mass media.” Another measure announced together with the amnesty is the extension of the zero corporate income tax rate offer, originally set to expire in 2017, available to foreign companies on closure and return of capital.

The previous amnesty mentioned by the minister, which was part of de-offshorization effort, was also initiated by the President in his address to the Federal Council in December 2014. The law “On Voluntary Declaration” needed for that action was passed by the State Duma in May 2015 – everyone was suggested to submit a special declaration to the tax authorities with information on the property (land and other real estate, vehicles, securities, shares in business), foreign companies under their control and foreign bank accounts. The declarants were promised tax secrecy regime and exemption from all types of liability, with no taxes to be paid on the assets disclosed.