Return of some benefits to foreign businesses

New bills
adopted by the government may abolish taxes on foreign business income if the
activity is conducted in favor of Russia, and may also allow the application of
reduced rates. At the moment, only Russian business has such an opportunity.
The laws should mitigate the consequences of the cancellation of international
tax agreements.

Agreements on
taxation and property were previously suspended. The freeze arose due to an
international economic conflict for individuals and legal entities. Now the
Cabinet of Ministers has proposed to retain some of the benefits for foreign
companies. It is proposed to exempt from income tax or, if possible, to reduce
income rates if:

• These are funds
  from insurance claims under foreign lease agreements
• This is the
  percentage of income paid to export credit agencies
• These are
  payments for the possibility of using the software

The amendments
should not allow a negative impact on the Russian economy.