© RIA Novosti / Ilya Petliurite in fotobounce par value of 1,000 rubles. Archival photo© RIA Novosti / Ilya Petliurite the image Bank
The Federation Council at the final meeting on Saturday will consider the law on increase of VAT and tax maneuver, «Russian offshore.»
Informed the budget Committee of the Federation Council recommended the house to approve a law raising the rate of value added tax (VAT) from 1 January 2019 to 20% from current 18% and at the same time retaining on a permanent basis, the rate of insurance contributions to the social extra-budgetary state Fund at 30%.
The act provides for the preservation of all existing preferential rates of VAT, as well as the rights of manufacturers to deductions for VAT amounts paid in the acquisition of goods, works and services, even if they were acquired at the expense of budget subsidies or public investment.
At the same time by 2025 to extend the validity of the zero rate of VAT to air transportation of passengers and cargo in the Crimea and Sevastopol, and also sets the same rate for air travel in the regions of the Far East. The validity of the zero rate VAT on air travel in the Kaliningrad region is also set to 2025.
The act retains on a permanent basis the current rate of contributions for mandatory pension insurance is 22%.
Tax maneuver in the oil industry
Senators will consider two of the law on the completion of the tax maneuver in the oil industry.
At the final stage of the tax maneuver, the export duty on oil will be reduced from the current 30% to 0% over six years, starting in 2019, while increasing the mineral extraction tax on oil for three years (through 2021).
To prevent the growth of domestic prices for petroleum products or the appearance of scarcity, the maneuver involves two mechanisms: reverse excise duty on oil supplied for processing, and the complementary damping excise, taking into account the profitability of export of oil products.
As a General rule, reverse the excise duty will be able to obtain Russian refiners that produce gasoline and diesel fuel is not below the fifth grade and supply to the domestic market at least 10% of the produced volume.
In addition, on the back of excise duty will be able to count the refinery, which is under sanctions of the USA and the EU, even if they do not produce fuel for the domestic market.
Additional damping of the excise tax to reverse excise on crude oil for refining, the Federal government can impose depending on the price conjuncture on world markets to compensate for shortfalls from oil exports of fuel and thus to constrain domestic prices.
Damping the excise tax can be both positive and negative.
Offshore on the island of Russian
Parliamentarians will discuss a package of laws that controlled by Russians offshore companies to re-register in the special administrative regions (SAR) of Russia, minimizing the possible consequences of sanctions by foreign States.
Documents outline the specifics of creation and functioning of such areas on the Russian Islands in Vladivostok and Kaliningrad in October, providing an opportunity for foreign companies to change the foreign jurisdiction to the jurisdiction of the Russian Federation and to the international status of the company. This does not require the liquidation of the company abroad, it is sufficient to remove the registration, to register in the SAR and to obtain the status of an international company.
In addition, senators will consider the law on tax administration.
At the last meeting of parliamentarians of the Federation Council postponed consideration of the law, which, in particular, abolishes the tax on movable property tax, that is, vehicles, machinery and equipment used as fixed assets in the production activity.
Legislators expressed concern about the falling incomes of the regions. According to the Vice-speaker of the Federation Council Victor bushmina, due to the adoption of the law of the Rostov region will lose 3.5 billion rubles, according to the Senator from the Belgorod region Nikolay Ryzhkov, the region will lose about 2 billion rubles.
«As a region to implement the may decrees, if we are from regional budgets take 200-300-400 billion?» — said in his turn, the speaker of the Federation Council Valentina Matvienko.
She offered to Saturday to prepare the decision of the chamber, which will reflect the loss of the regions from the introduction of tax rules and to solicit proposals from the Ministry of Finance on how to compensate for the shortfall in income.
The budget Committee believes that the lost revenues must be fully offset by budgets of subjects of the Russian Federation from the Federal budget.
The Committee has prepared a draft resolution of the Federation Council which recommends that the government should provide, starting in 2019, compensation of lost income regions due to the increase in the ratio of enrollment to the regional budgets of excise duties on alcohol and tobacco products.
This law simplified the procedure for confirming the validity of the application of VAT 0% for export goods, transport and shipping documents can be submitted only at the request of the tax authority. Similarly, a simplified procedure for confirming the right to exemption from payment of excise duty when goods are exported outside the customs territory of the Eurasian economic Union.
Introduced a permanent ban on registration in tax bodies of the agreements establishing consolidated taxpayer groups (CTG) and changes to the agreements providing for the accession of new members of such groups. Determined the maximum expiration date of the treaties establishing the CTG no later than 1 January 2023.