Foreigners pay lower taxes in Russia than Russians

Foreign businesses have more tax benefits in Russia than Russian companies, Deloitte and the Center for Strategic Research think tank concluded after a joint research.

As many as 75% of foreign companies enjoy tax benefits. At the same time, the share of Russian companies entitled to such benefits is only 65%. Experts believe this happens because foreign companies carefully choose regions where to develop their business. As a rule, the choice is made in favor of Russian regions with the lowest tax rates. Russian businesses are less mobile and as a rule, are based in their specific regions.

Furthermore, exporters are entitled to considerable tax incentives in Russia. Chemical producers seem to make up the majority of this category – nearly two thirds of them have tax preferences. The automotive industry is rarely entitled to any tax exemptions: almost half of the enterprises in this sector have no tax privileges.

Most companies are granted tax preferences as part of regional investment projects. Capital investment can also earn the investor special treatment. The third option is to enter a Special Investment Contract or become a tax resident in Territories of Priority Socioeconomic Development, which offer special tax rates, RBC writes.

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