On November 14 at the Pravo.ru conference on legislative changes and practice trends in the field of construction and development the topic of bankruptcy of developers was touched upon. The experts also discussed integrated development of territories, excess profit tax in the context of the construction industry, the possibility of the customer to withdraw from a construction contract in case of systematic violation of contract terms by the contractor and other topical issues.

Alexey Stanchin, Senior Tax Consultant at Tax Compliance, shared information about the new excess profit tax. This one-time levy is designed for large companies. The important point is that real estate developers using escrow accounts and not paying dividends in 2021-2022 are exempted from the obligation to pay this tax. This is an important aspect that may impact tax planning strategies in the construction industry.

The article following the forum is at the link.