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Quarantine in Russia will increase tax revenues

Quarantine in Russia will increase tax revenues

Now it is much more difficult for the owners of companies registered in offshores to bypass Russian legislation and hide their income due to the closure of borders by most countries. Due to the quarantine, the loophole for avoiding the rules has narrowed, according to which only those citizens who have been in the state for more than 183 calendar days throughout the year are considered residents of Russia. Thus, some businessmen left the country in order not to submit reports to the Federal Tax Service on their foreign assets.

Due to the closure of the borders, many entrepreneurs will spend more time in Russia than they planned, and they risk being recognized as residents of the country by the end of the year. In this case, they will be obliged to declare their not only Russian assets, but also foreign ones, as well as pay tax for them.

Those entrepreneurs who left the country only to get rid of their resident status are in danger more than others, said Yana Semenyaka, an expert at Lemchik, Krupskiy and Partners company. She advised businessmen to travel as far as possible, preferably to those countries with which borders are not closed. As for the real non-residents, the situation is simpler. If they usually live in their homeland for about 300 days annually, a delay in Russia for several months will not change anything.

Clara Valentina Vorobyova, partner of the auditing company MEF RKF, noted that as long as private flights between countries are open, there is no threat to tax planning. In addition, she is confident that since offshore zones are interested parties, they will adjust to sanitary restrictions.

Rustam Vakhitov, a partner at Crowe Expertise, is confident that many entrepreneurs will try to restructure their business in order to preserve their own assets. In addition, many experts advise not to make rash decisions so as not to make unnecessary mistakes.

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