Duma will probably To Vote against Tax Code's Article On Profits Tax

"It is impossible to publicly defend the government-proposed version of the Tax Code's article on profits tax, and even the Yedinstvo faction will not back it openly," Andrei Makarov, head of the Expert Council on Tax Legislation, told journalists today. In his opinion, this version contains a lot of provisions that would be detrimental to Russia's business. In particular, the government proposes not to acknowledge expenses, which have been incurred on the taxpayer by deals on identical goods or services "above his routine expenses". This means that tax officials will interpret the "routine expenses", which have not been defined anywhere, the way they want. Additionally, it is suggested that foreign companies "operating primarily in the Russian Federation" be considered eligible for Russian taxes, RBC announces. The word "primarily" can also be interpreted by tax authorities in different ways. Makarov is flatly opposed to the article saying that the seller, who has not received payment for supplied goods within 180 days, shall state the value of such deal as his income.