Tackling Offshoring: Combatting Capital Flight and Improving Russia’s Investment Climate
An entire set of measures was taken last year to address the issue of offshoring in the Russian economy, and as a result, agreements on the avoidance of double taxation with a range of countries came under review. With each passing year, countries are exchanging more tax information, which is assisting Russia’s efforts to tackle capital outflow. At the same time, a range of stimulus measures to attract tax residents to the country are under development. The tax payment procedure for owners of foreign-controlled companies has been made easier. In addition, improvements are being made to the tax regime in special administrative districts in Vladivostok and Kaliningrad. It is now easier, for example, for international holding companies to relocate there, and tax rates have been reduced. What impact are these measures having on the business climate in Russia? Will special administrative districts offer an alternative to offshoring, or are additional measures required to encourage the repatriation of assets?
Mikhail Orlov, Partner, Head of Tax and Legal, KPMG in the CIS
Anton Alikhanov, Governor of Kaliningrad Region
Nikolai Zhuravlev, Deputy Chairman of the Federation Council of the Federal Assembly of the Russian Federation
Pavel Kolomensky, First Deputy Chairman of the Russian Union of Industrialistsand Entrepreneurs Tax Policy Committee
Alexey Sazanov, State Secretary – Deputy Minister of Finance of the Russian Federation
Alexander Shenderyuk-Zhidkov, Director, Sodruzhestvo