Russia to Introduce Simplified Tax Amnesty

Stephen Harris

10 August 2005

The Russian government is scheduled to discuss plans to introduce a simplified tax amnesty later this week in an attempt to rebuild bridges between the Russian government and the investment community, both at home and abroad. Under the plans, an amnesty for personal incomes will run from January 1 to July 31 2006. Individuals will be able to deposit previously undeclared funds into domestic bank accounts without facing penalties or charges from the tax authorities. They will though be required to pay income tax on declared funds at a rate of 13 per cent. Business confidence in the Russian economic system is at a very low ebb after a number of high profile corporate tax investigations last year and the amnesty is seen as one way to repair the damage. The amnesty is supported by President Vladimir Putin, who has been quoted as stating that capital must return to work in the Russian economy rather than "loafing around in offshore zones".