The Cabinet of Ministers of the Russian Federation intends to expand the limits of tax control of companies by reducing the entry threshold from 1 billion to 800 million rubles

One of the Cabinet proposals was to reduce the requirements for companies that can participate in the voluntary tax monitoring program. Kommersant reminds that within the framework of this project, companies themselves provide tax authorities with access to their accounting departments in order to correct errors in time and avoid fines.

If previously the monitoring only concerned companies with assets/turnover of 1 billion rubles and that paid taxes of 100 million rubles per year, now the authorities intend to lower the bar to 800 million rubles and 80 million rubles, respectively.

This tax control has existed since 2016, and during this time the Federal Tax Service has had access to tracking the accounting reports of 568 companies from 20 industries, but medium-sized companies are a minority among them.

“Reducing the criteria will allow more companies to switch to this form of tax control, including medium-sized companies,” Kommersant quotes representatives of the Federal Tax Service.

Other proposed changes include:

• the right of regional tax authorities to independently reduce the minimum period of ownership of real estate to receive a personal income tax benefit, regardless of the reasons for its acquisition (currently, a bonus for a minimum of three years only it is possible for apartments received as a gift, inheritance, from a personal fund or privatized, in other cases minimum – five years);
• the ability to take into account for the calculation of income tax “income in the form of sanctions” collected by the court from organizations of “hostile” countries after March 5, 2022 (until the end of 2026, such income will be taken into account “as the funds actually arrive”, and not from the date of the judicial decisions).