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The Future of Russia’s Tax System: Stepping up to the Challenge

Igor Lotakov, Country Managing Partner in Russia and Eurasian countries, PwC, discussed the latest tax developments in Russia and their impact on business at the 24th St Petersburg International Economic Forum. The session was traditionally moderated by Andrey Makarov, Chairman of the Budget and Tax Committee of the State Duma of the Federal Assembly of the Russian Federation.

The new business environment in Russia has brought in a number of changes in the Russian tax system, primarily affecting SMEs. Tax administration has been facilitated by emerging and convenient tax services and formats. Last year, electronic tax reporting became mandatory for businesses. At the same time, the introduction of the mandatory use of CRE (cash register equipment) led to the cancellation of the single tax on imputed income and contributed to the eradication of parts of the grey economy. New product labelling requirements make it impossible to take advantage of certain special tax regimes, which has increased the burden on companies. How should tax policy drive business development? How can digitalisation change relations between the business community and the government? How can we enable efficient tax administration and let companies breathe?

Igor Lotakov shared his thoughts on the current mood in the business community, highlighting two trends: (1) companies have become more socially responsible and (2) they realise that additional adjustments are is inevitable. According to Igor, there are two agendas: a local agenda that encourages investment and limiting capital outflows and a global agenda on taxing digital assets and driving the digital economy. Igor noted: “The challenges of the digital economy and tax issues—reallocating the tax base, introducing a carbon tax—should be dealt with in partnership with other countries. The Russian government will mediate the interests and expectations of the Russian business community. This will directly affect the capitalisation of Russian companies.”

Other session participants included:

  • Daniil Egorov, Head of the Russian Federal Tax Service (FTS);
  • Maxim Reshetnikov, Russian Minister of Economic Development;
  • Anton Siluanov, Russia Minister of Finance;
  • Tadzio Schilling, CEO, Association of European Businesses (AEB).

and others.

Igor Lotakov SPIEF 2021
Igor Lotakov SPIEF 2021

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Anna Smischenko-Mironova

Anna Smischenko-Mironova

Head of communications, PwC Russia

Tel: +7 (495) 967 6172

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