TAX SYSTEM: PRIORITIES
Andrey Makarov, Chairman of the Committee on Budget and Taxes, The State Duma of the Federal Assembly of the Russian Federation
Alexey Sazanov, State Secretary – Deputy Minister of Finance of the Russian Federation
The tax system of the Russian Federation is one of the key elements of the financial and economic system of the country that predetermines not only the state budget system, but also the entire Russian economy.
There are many factors that predetermine the direction and dynamics of tax system development: goals and objectives of socio-economic development of the country, the needs of the budget system, the situation in the foreign policy arena, etc. In one way or another, we have already learned to take all of these factors into account when formulating tax reform directions. But today Russia, like many other countries, is facing a new reality: there is a new factor affecting national tax systems — international tax trends.
With the globalization of the world economy, the influence of international taxation rules on the Russian tax system is increasing. BEPS rules, CBCR requirements, MLI convention have already become a tool for regulating tax relations in Russia. To date, the Russian Tax Code has many norms, the concept of which has been developed at the international level (CFC, the concept of beneficiary recipient of income, country information of an international group, etc.). Next in line is the adaptation of Russian legislation to the new BEPS 2.0 rules — Pillar 1 and Pillar 2, as well as the adaptation of the tax system to the new carbon border adjustment (CBA) in Europe.
• What does this international regulation mean for the Russian tax system?
• Can or should Russia follow international trends in taxation?
• Will compliance with international taxation trends be beneficial for the tax system or will it be a threat to national tax sovereignty?