VERBA LEGAL's tax practice team consisting of Counsel Evgeniya Zainchukovskaya, Senior Associate Andrey Sheptiy and Paralegal Altana Lidzhieva prepared an overview of the latest regulatory changes related to the introduction of the federal investment tax deduction.

The provisions of article 286.2 of the Tax Code of the Russian Federation (hereinafter — the “Tax Code”) take effect from 1 January 2025 and introduce the federal investment tax exemption.

This mechanism assumes the possibility of reducing the part of the income tax to be credited to the federal budget for certain types of expenses. In some cases, it will allow companies actively investing in fixed assets to maintain the effective income tax rate at 20%.

We discuss the specifics of the new instrument in our Alert.