Russian Duma to allow those under sanctions to pay taxes abroad only

The State Duma adopted a bill that will allow Russian citizens under sanctions to avoid reporting their incomes and paying taxes in Russia. The bill was passed with 322 votes for, 85 votes against, and one abstention.

Russia’s Labor Party, Communist Party, and A Fair Russia Party voted against the bill.

This amendment to the tax code was drafted by the United Russia deputy Andrei Makarov. It allows the Russians owning businesses or property abroad to avoid paying taxes in Russia if they have fallen under sanctions. Previously, such individuals were obligated to pay taxes in Russia, because they were not allowed to leave the country as a result of sanctions. The amendment was added to a law that was no way associated with sanctions.

Makarov justified the introduction of this law by referring to particularities of European tax laws. Meduza has learned that of all Russian citizens who fall under sanctions, the new law is primarily beneficial to billionaire Gennady Timchenko. Timchenko paid taxes in Switzerland for many years, but was forced to live in Russia since 2014 because of sanctions.