IZVESTIA. In sympathy with the United States, Russia needs to introduce a national taxation regime for income of all Russians, including those who live abroad, says the report “Strategy of Russia on the Protection of the Financial Sector Against Western Sanctions”, which was prepared by the Academy of National Economy and Public Service attached to the Russian President, Izvestia writes.
Such taxation region could be introduced within three or five years and should cover all income that Russians receive abroad, i.e. dividend, interest, income from the sale of stocks or real estate, income derived from various consultations. At present, Russians, who live more than six months abroad, are not Russian tax residents and pay no taxes from income received outside of Russia.
As Ivan Kapitonov, the author of the report and deputy chair of the State Economic Regulation of the Academy, tells Izvestia, a relevant provision could be stipulated as part of the presidential measures to deoffshorize the Russian economy, in particular in the MinFin-drafted law on controlled foreign companies, which obliges Russian companies to pay taxes on retained earnings of their foreign entities.
The new regulations would prompt Russia to create something of the US FATCA, he adds and this would be part of the measures aimed at deoffshorizing the Russian economy.
It will be no easy matter to phase in such tax payment scheme, but it will bring big money to the national budget, experts think.
