21/05/20

INTERNATIONAL TAX: Russia Offers More Tax Relief to Ease Impact of Coronavirus.

As published on news.bloombergtax.com/daily-tax-report, Wednesday 20 May, 2020.

Russia is providing tax breaks to support social workers and small businesses in the wake of the coronavirus pandemic.

Incentive payments to social workers shouldering additional workloads due to the pandemic will be exempt from personal income tax, Prime Minister Mikhail Mishustin said.

In addition, debt that is canceled or forgiven on concessional loans granted to medium and small businesses for the purpose of supporting employment won’t be taxable, he said.

Donations to medical institutions or nongovernmental organizations for the diagnosis and treatment of a new coronavirus infection will be deductible for corporate profit tax purposes, Mishustin said. The value-added tax won’t apply to these transactions, he said.

The government last week announced plans to write off all taxes and social levies due in the second quarter, except VAT, for medium and small businesses, as well as individual entrepreneurs adversely affected by Covid-19. It also moved to refund taxes paid for 2019 by self-employed individuals.