On 18 July 2018, the Russian lower house of parliament adopted the Bill No. 249505-7 on improving tax administration in the third and final reading.
The Bill includes following measures:
- Eliminate transfer pricing control (audit) for domestic transactions and apply the thresholds that currently apply for domestic controlled transactions to cross-border transactions;
- Eliminate the tax on movable property reported as fixed assets on the balance sheet from 1 January 2019 (the 1.1% tax was effectively reintroduced from 1 January 2018 through a change in tax law in 2017);
- Extend the moratorium on the formation of consolidated tax groups and the accession of new participants in existing groups; and
- Simplify VAT refund procedures and improve VAT audit procedures.
The Bill must be approved by the Federation Council and signed by the president before entering into force.
