On November 2, the XIX Annual Russian CFO Summit will open at the Intercontinental Hotel in Moscow. The event will traditionally bring together recognized industry experts, CFOs from the real sector of the economy. On the eve of the summit the speaker of the session "Macroeconomic situation and government support measures", Head of Tax Compliance Practice Nikita Zharov gave an interview for Trinity Events Group.
- Nikita, your speech will be devoted to the new tax benefits. What are the main areas of business that are affected by these benefits and why?
In 2022, the government has provided businesses with a number of significant tax benefits. It seems possible to divide these benefits into 3 large groups:
Group #1 - anti-sanctions tax incentives. The introduction of these benefits from the state is a way to support businesses affected by sanctions of foreign countries. This group could include, for example, the benefit associated with a change in the procedure for recording exchange rate differences for profits tax purposes;
Group No.2 - other tax incentives. The introduction of these benefits is conditioned by the desire of the state to give impetus to the development of certain sectors of the economy and to promote the creation of favorable business environment in the country. For instance, the exemption from VAT on operations of alienation of exclusive rights based on the franchise agreement may be referred to this group;
Group 3 - tax benefits for IT-business. In 2022, the state confirmed its desire to develop this segment of the Russian economy. Therefore, this industry has received a significant number of tax benefits, such as exemption of IT-companies from tax audits and zeroing of the income tax rate for IT-business.
- Let's dwell a little more on the benefits for IT. What can high-tech companies expect?
In 2022, the state confirmed its desire to develop the IT segment of the Russian economy. Therefore, the said industry has received a significant number of tax benefits, for example:
- exemption of IТ-companies from tax inspections;
- zeroing of profit tax rate for IT-business;
- deferral of insurance premiums;
- exemption of certain operations from VAT, etc.
In addition, in the summer of 2022 a new law was passed that significantly expanded the range of potential recipients of tax benefits.
- A separate item is the abolition of scheduled inspections and deferral of payments on debt obligations. Is there no opposition from banks and inspection bodies?
Exemption of a number of economic sectors from inspections is due to the government's desire to reduce the burden on business in a difficult economic environment. At the same time, it is important for businesses to remember that the exemption from inspections is not a reason to let their guard down. Firstly, the moratorium on inspections will end, and then business should be ready to provide the regulatory authorities with explanations on controversial issues of economic activity. Secondly, law enforcement practice also makes adjustments. For example, tax authorities may not check IТ-companies. At the same time, control measures within the framework of pre-inspection analysis are not prohibited. It is important to take this into account when carrying out activities and planning various operations.
- What are the nuances that companies applying for benefits must keep in mind? What obligations does this impose on them?
The effectiveness of tax incentives largely depends on the actions of law enforcers and the goals that taxpayers pursue. Experience shows that the tax authorities always pay special attention to those wishing to take advantage of the available benefits. The result of this may be the formation of law enforcement practice, which makes certain changes to the goals originally pursued by the legislator. The said approach of the controlling bodies is also conditioned by the fact that in practice a considerable pool of "unscrupulous" business entities is formed, which seek to use the tax privileges not directly intended for them.
Given the above, it should be assumed that the use of benefits can be fraught with various difficulties. Therefore, it is important for businesses to monitor developments in legislation and law enforcement practice and to adapt to new conditions in a timely manner.
Businesses should actively use various digital solutions that facilitate the process of receiving state support measures. For example, you can pay attention to the services of the Russian Federal Tax Service, which allow you to quickly obtain information about available benefits.
- If we talk about plans and trends for 2023. How to continue to build a financial development strategy in conditions of uncertainty? What other support measures can business count on in the near future, in your opinion?
A characteristic feature of any crisis is the reduction of the planning horizon and the increased demand for efficiency. The taxation sphere is no exception. That is why business should look for different ways to increase tax management efficiency, provided by the current tax legislation. The use of tax exemptions, precisely, can become such a tool.
Specific legislative changes will largely depend on the general economic environment. However, there is every reason to believe that the trend of government support for business will be preserved in 2023.
You can read the full program of the event and register here.