Page 22 - RusRPTApr20

more, he or she is to be able to temporarily halt debt servicing and extend the repayment schedule, and ii) the President also asked to reform the personal default procedure so that it would be easier to restructure debt.
III SME and industry support
All taxes except for VAT are to be delayed by six months, and micro enterprises can also postpone social security payments.
A mechanism for restructuring the loans of SMEs involving extension for six months is to be introduced for those companies in the impacted sectors. The president also urged the central bank and the government to introduce lending support measures, including guarantees and reduced rate loans, to support the sector.
Companies active in sectors that experience the largest effects of the pandemic are to enjoy protection from creditors for six months. The list of such sectors is to be published and maintained by the Government.
To promote wage growth for those employed at SMEs, the President announced plans to reduce social contributions from the standard level of 30% to 15% of wages that exceed the minimum living wage.
IV PIT base broadening and changes to the tax on dividends
The tax on dividends paid to offshore companies is to be increased to 15%.
The personal income tax of 13% is to be applied to interest income on bonds and deposits for individuals who hold more than RUB 1mn in such assets.
2.9 Putin sneaks in new tax hikes under the cover of coronavirus
During his televised address to the nation on March 25 Russian President Vladimir Putin introduced several new taxes in addition to announcing measures to contain the spread of coronavirus (COVID-19) epidemic in Russia.
22 RUSSIA Country Report April 2020 www.intellinews.com