Russia imposes one-time levy on large companies to boost budget

The Russian Duma has passed a bill enforcing a one-time tax on excess earnings from large corporations, aiming to supplement the national budget by an estimated 300 billion rubles (US$3.4 billion) in 2024.

This unanimous decision mandates payment by January 28 of the following year.

The tax, fixed at 10% of additional profits, is solely designated for the federal budget.

The bill targets corporations whose average turnover for 2021 and 2022 surpassed 1 billion rubles (US$11.5 million), calculating the tax based on profits averaged over 2018 and 2019.

The law exempts several types of businesses, including small and medium enterprises (SMEs), businesses already under a unified agricultural tax, companies formed post-January 1, 2021, and foreign companies entering the Russian market after the specified date.

Additionally, companies in oil, gas, and coal production sectors are exempt, as they are planned for other tax reliefs.

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