Economic News from Russia

[Ülev]

[Ülev]

^^
https://www.mk.ru/social/2020/02/11/...-reakciya.html

[Ülev]

Евро по 85, доллар по 75: рубль
https://www.mk.ru/economics/2020/03/...-rukhnuli.html

[The Lawspeaker]

Moscow and Saint Petersburg today became two times closer to each other in terms of travel time by car. A few hours ago, the new M11 Motorway was opened, connecting the two capitals. Its name was selected by a vote. It's a toll road, but oddly enough, a trip along it will be in many cases cheaper than it's now. The four oblasts, through which it goes, will have new opportunities for development.

Rosneft is the biggest taxpayer in Russia. For the last year, it will pay over 3.5 trillion rubles to Russia's budget. Igor Sechin, the company's CEO, stated that today at a meeting with Vladimir Putin. The meeting was dedicated to Rosneft's recent performance figures and future projects. The most important of them, Vostok Oil, will allow an essentially new oil and gas province to be formed on the Taimyr Peninsula.

[Ülev]

[Ülev]

Russia did what the USSR only dreamed of: Sakhalin got rid of Japanese heritage

[KirillMazur]

The Ministry of Finance of the Russian Federation has begun to denounce the tax agreement with Cyprus. Next in line is the Netherlands. Further - all others. Tax haven time is running out.

Offshore zones are repeating the fate of the overall globalization process. They emerged as a convenient tool for anonymizing capitals at the stage of their expansion from the "first world" to all others. But then they quickly turned into an even more convenient way of evading taxes.

It cannot be said that Russia invented its own path on its own. Back at the G20 summit in 2012 and then at the meeting of the Organization for Economic Cooperation and Development in February 2013, the problem of erosion of the tax base and the withdrawal of profits from taxation (Base Erosion and Profit Shifting - BEPS) was formulated, which was recognized worldwide.

After that, the leading countries of the world came up with and approved the BEPS confrontation plan, consisting of 15 points. The concept of controlled foreign companies appeared, the concept of the actual recipient of income, the requirement for mandatory disclosure of information on cross-border transactions with elements of tax planning was introduced, the level of mandatory economic presence (the so-called substance) was formulated for most classical offshore companies, such as the British Virgin Islands, Seychelles or the UAE.

The only difference is that most of the participants in their parliaments have not really ratified them so far, while Russia has methodically moved from words to deeds.

Over the next years, our country developed and enacted legal restrictions on remote management of tax residency, put things in order with CFCs and especially with foreign companies operating in Russia, actually owned by Russian owners and only managed through an offshore.

As a result, instead of the 2% taxes previously paid, now more and more such businesses are subject to the normal 13% personal income tax. Or 15% tax on dividends and interest payments sent offshore.

Now the last stage of the strategic plan is being carried out - the synchronization with the Russian level of tax rates with those offshores who are interested in using Russian money, and the termination of special financial relations with everyone else.

For example, in April 2020, the government of the Republic of Cyprus was asked to bring the internal tax of dividends received from Russia to the Russian level of 15% under the Agreement on the avoidance of double taxation (DTA). The Cypriots rejected the offer. As a natural result, Russia began the procedure for withdrawing from the agreement with Cyprus altogether.

As a result, 180 billion "Cypriot" investments accumulated in the Russian Federation will soon return "home to Russia". In fact, previously withdrawn from our country and reinvested already under the guise of foreign. Which led to the withdrawal of about 10.5 billion to the Island bypassing taxes. This is with a nominal GDP of $ 24.5 billion in Cyprus.

Roughly speaking, 41% of all Cypriot profits in 2019 were of direct Russian origin. Now they will be gone. Luxembourg and Malta understood the “signal” correctly and agreed with synchronization. The turn came to the Netherlands. Their Ministry of Finance received from Russia an official request to amend the current bilateral DTA.

Russia is steadily and methodically engaged in deoffshorization of its economy. Without revolutions, without loud words, without hysterical tearing of vests on the chest. Calmly descending the hill.
While the swearing goes on, things get done.

https://russtrat.ru/comments/7-avgusta-2020-0013-1435

[ixulescu]

this reminds me of childhood, in my town there was regular Raketa service

I don't understand why we don't build more hydrofoils, they were excellent fast river boats.

[KirillMazur]

Approximate table of global economic recovery.

[travv]

Approximate table of global economic recovery.

Welcome back Kirill!