Russia’s Ministry of Finance is reportedly finalizing a draft law to impose a windfall tax on large Russian companies, aiming to address the country’s budget deficit and narrowing current account surplus. According to Finance Minister Anton Siluanov, the tax will be set at approximately 5% of excess profits from 2021 and 2022, with an expected yield of around RUB 300 billion. The tax, a one-time mandatory contribution equal to 10% of profits, will offer a reduced rate of 5% for early payment in 2023. While officially taking effect in 2024, the finance ministry anticipates companies to make payments this year as well.
Siluanov emphasized that the windfall tax would primarily impact 0.1% of companies, excluding oil, gas, and coal firms. The revenue generated will be dedicated to vital areas such as infrastructure, road development, education, healthcare, and state employee remuneration.
