Russia will suggest new incentives for investors

15.11.2011 In spring 2012 FFMS is going to bring to the State Duma the draft of amendments to the legislation in tax sphere. The changes will affect the rights and duties of long-term investors who own Russian securities over three consecutive years. Tax breaks will be the following: if foreign individuals hold Russian securities over three consecutive years then in case of realization of these civil law objects they would be exempted from the obligation to pay tax on income from this realization at the rate of 13%. FFMS has already drafted numerous projects aimed to optimize the tax burden of investors but they have not received support from the Ministry of Finance. At the moment these state agencies have reached an agreement on the issue of reducing the tax burden of long-term investors.

Expert’s opinion

“Today the number of such long-term investors does not exceed 1mln persons. However it is possible that with the adoption of the amendments in tax sphere the number of foreign investors will increase significantly, that will have a positive effect on the national budget. Therefore Russia should benefit from the planned changes”.

On the basis: www.kommersant.ru

Andrianova Irina ( the lawyer of international consulting department of Honest&Bright)