Bashkiria extends reduced corporate income tax for another year

The State Assembly of Bashkiria adopted amendments to the law on a reduced corporate income tax rate on May 25. The changes are to extend the reduced rate to 2024. This is in line with changes at the federal level: in November 2022, amendments were made to the Tax Code of the Russian Federation, according to which, until January 1, 2025, the application of reduced rates on income tax payable to the budgets of the constituent entities of the Russian Federation is extended.

Instead of paying 20% of the profits to the budget, businesses and other organizations will give 12.5%.

“This is done to ensure stable working conditions. In the future, we expect that the preferences granted will yield a return in the form of an increase in the economic performance of enterprises, in particular, by increasing fixed assets, creating new jobs, and, accordingly, budget revenues,” commented Lira Igtisamova, Deputy Prime Minister - Republican Minister of Finance.