Tax on return to Russia

Sultan Khamzaev, a deputy and a member of the Russian parliamentary committee on security and anti-corruption, put forward an initiative to create a register of "unreliable legal entities, brands, trademark owners".

According to the deputy, this registry should include companies that have stopped (suspended) their operations in Russia for political reasons.

Foreign companies that decide to resume their activities in Russia are proposed to impose additional taxes and oblige them to create some kind of security deposit.

As of today more than 200 foreign brands have suspended their activity in Russia.

We would remind you that in early March Andrei Belousov (First Deputy Prime Minister of Russia) said that at present there are three options for relationships (solutions) with foreign companies:

• The company continues full operation in Russia
  
  
• Foreign owners transfer their shares to Russian partners (if the political situation stabilizes, they will be able to return to the market).
  
  
• Company terminates operations in Russia. In this case it can be regarded as deliberate bankruptcy

On March 10, at the meeting of the President of the Russian Federation with members of the government, Mikhail Mishustin said that external administration could be introduced in case foreign owners groundlessly shut down the company.

Prior to that, a similar proposal was put forward by the Ministry of Economic Development: if a company that left the Russian market is owned by foreigners (25% stake or more), then external administration should be introduced for a period of six months. Within six months the owners may return to work or sell their share.

All of the proposed measures, according to officials, are primarily aimed at saving jobs.

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