The "Super-Profit Tax" Law has been signed

The Law on "Super-Profit Tax" has been published on the official portal of legal information, signed by the President. According to this law, organizations whose average pre-tax profit for 2021 and 2022 exceeds 1 billion rubles are required to pay a one-time tax of 10%.

The law will come into force on January 1, 2024. According to the law, taxpayers must independently determine the tax amount and pay it no later than January 28, 2024. However, there is an opportunity to reduce this amount by half to a rate of 5% if the taxpayer makes a security payment during the period from October 1 to November 30, 2023.

The law provides exemptions from the super-profit tax for certain categories of organizations. It does not apply to:

• Companies involved in the extraction of gas, oil, coal, and producers of liquefied natural gas with current production and export;
• Small and medium-sized enterprises;
• Organizations paying a unified agricultural tax;
• Russian organizations established after January 1, 2021 (except those formed as a result of reorganization);
• Foreign organizations that started their activities in the Russian Federation through permanent establishments after January 1, 2021;
• Developers implementing projects using the funds of citizens through escrow accounts (provided they did not pay dividends in 2021-2022);
• Credit and non-credit financial organizations subject to bankruptcy prevention measures;
• Companies that had no revenue from sales in 2018-2019.

It is worth reminding that the bill for the super-profit tax was introduced by the Government on June 7. Members of the State Duma supported amendments to it in the first reading on June 28, in the second reading on July 19, and in the third reading on July 21. On July 28, the law was supported by the Federation Council. According to the Government's information, this tax is expected to contribute approximately 300 billion rubles to the treasury.

 See Federal Law No. 414-FZ of August 4, 2023, "On the Super-Profit Tax"

Nadmitov, Ivanov & Partners Law Firm advises clients on tax matters.