Tax exemptions for agriculture are extended

The Russian State Duma passed the first reading of a bill extending the tax exemption treatment of agricultural profit. This document is intended to neutralize the impact on agriculture from Russia’s accession to the WTO.

Now agricultural producers enjoy exemption from tax on organization’s profits, but from the January 1, 2013 the validity of the benefits expires. According to the bill zero tax rate will be applicable till the end of the year 2016 and the period of the reduced tax rate - 18% - will be replaced by the period from 2017 to 2020. (Now it is from 2013 to 2015.).

"The new law would save about 15 billion rubles a year, and those savings companies will be able invest in new projects, creating new jobs in rural areas," said the head of the Duma Committee on Agrarian Issues Nikolai Pankov.

By the second reading of the bill it will be completed, said the deputy chairman of the State Duma committee for agrarian issues Shkolkina N. It will cover amending initiatives and implications on agriculture from Russia's accession to the WTO. This exemption from taxation, in particular relates to the value added tax on import of breeding stock on the territory of the Russian Federation, and also exemption from income tax on grants and subsidies for creation, development and support of peasant (farmer) economy, which are derived from the Federal budget. MP said about the possibility of transition to pay a single tax on imputed income by the organization, which employs over 100 people, till the January 1, 2018.

Agro News, (2012).

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