Russia's lower house of parliament, the Duma, has approved the draft version of Chapter 25 (Profit Tax) of the Tax Code. As a result, Russia will probably abolish all tax incentives in favour of a significantly reduced tax rate (24%), thus simplifying its notoriously complex tax regime. According to Deloitte & Touche in Russia, the latest text of the draft suggests that companies that were previously granted certain regional tax incentives on the basis of an investment agreement may continue to apply these benefits until the agreement ends.
June 30 2001