Formal migration: the legislature's answer

Formal migration of a business to regions with lower taxes is still used, and the legislature is already responding to it.

A corresponding bill was introduced in the State Duma today. Among other things, it amends the Tax Code of the Russian Federation on the application of the reduced rates of the region of re-registration.

• The substance of the changes: if a company moves from a region with high taxes to a region with lower taxes, then for three years (including the period of the move) it will pay tax at the higher rate, the rate of the region it left.

Because the bill was initiated by the Government of the Russian Federation, it is safe to expect that it will come into force on 1 January 2025.

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