In the pharmaceutical industry, the risk of tax claims and patent disputes is extremely high. Changes in tax laws, especially in developing countries, can have a significant impact on pharmaceutical companies, and patent disputes can seriously threaten their profits.

One of the major trends in the pharmaceutical market at the moment is the struggle to make drugs affordable and cheaper. Many governments in different countries are adopting laws and regulations aimed at improving the procurement of medicines and protecting the rights of consumers.

However, such measures can lead to tax claims from the state tax authorities. In addition, patent disputes may arise between pharmaceutical companies and governments over the denial of patent licenses and other issues.

Another trend in the pharmaceutical market is the strengthening of patent protection and the fight against infringers. Very often this is done through litigation. For example, in a number of countries, generic companies purchase natural drugs in other countries, further process them, and resell them in third countries. Such actions violate patent rights and can lead to patent disputes.

"Claims from the Federal Tax Service may arise already at the stage of drug development. Because a company can invest substantial funds, but get the result after a few years or not get it at all. The tax authority likes to say that if there is an investment, but no result, then the investment is economically unjustified. Profit taxes are paid on income minus expenses. Meanwhile, the Tax Code says that expenses are actually made, documented and economically justified costs. The question of economic feasibility of investments can get in the way. And this affects the amount of income tax. Tax risks arise at other stages of work as well, including the promotion of medicines. Advertising costs are regulated and constitute no more than 1% of sales revenue", - said Evgeniya Zainchukovskaya, Senior Tax Compliance Consultant.

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