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Economy/Business
22 November , 15:55

Bashkiria State Assembly will adopt a law on taxation of residents of PSEDA

Deputies of the State Assembly of Bashkortostan are planning to adopt a law that concerns the taxation of organizations-residents of priority development areas (PDAs) at a plenary session on November 25.

PDA residents enjoy privileges on corporate profit tax. Still, they can apply a reduced tax rate only to the profit received from the activities provided for by the agreement on the implementation of activities in the PDA territory. The bill proposes applying a reduced rate to the entire tax base, regardless of whether the agreement provides a particular direction.

 To take advantage of this opportunity, a resident must comply with several conditions established by Article 284.4 of the Tax Code of the Russian Federation. In particular, a PDA resident company must keep separate records of income (received under an agreement on the conduct of activities in this territory and other income). Revenue from the activities specified in the agreement must account for at least 90% of all income received by the resident company.

 “The bill was introduced by the Government of the Republic of Bashkortostan,” the speaker of the parliament, Konstantin Tolkachev, said. “It is supposed to streamline the preferential taxation system of PDA resident organizations, to make it more transparent. The Ministry of Finance expects that tax revenues from the PDA residents will subsequently offset the shortfall in budget revenues”.

Author: Azat Gizzatullin

Translated by:Tatyana Aksyutina