Entrepreneurs may be allowed to pay less taxes on past losses

The government will consider allowing entrepreneurs in 2020 to reduce taxable profits by 100% of losses from previous years, and not by 50%, as the law now allows, First Deputy Prime Minister Andrey Belousov said. It is assumed that the changes will apply only to 2020, writes . Vedomosti

When calculating income tax for the current tax period, a company or entrepreneur is allowed to deduct from the tax base the loss for the previous year or transfer this right to the future. But since 2017, there has been a restriction in Russia: only 50% of past losses can be taken into account when calculating the tax base.

The 50% limit becomes a brake on business and investment activity in the post-crisis period, Alexander Shokhin, president of the RSPP, emphasized at a video conference with Belousov. Belousov said that the removal of the restriction would be sensitive for regional budgets, but promised to finalize the proposal, taking into account the position of the Ministry of Finance.

In March 2020, for the first time since January 2015, Russian companies went into negative territory - the balanced loss of the business amounted to 277.5 billion rubles against 1.1 trillion rubles of profit a year earlier.

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