Page 67 - RusRPTJun20

Social fund revenues will be boosted by halving wage-based social taxes to 15% for SMEs. This will give companies relief this year at just under 0.3% of GDP .
No other major tax changes are planned, at least for this tranche. However, the payment of several taxes is deferred for 3 to 6 months, with the largest exceptions being VAT, excise duties and mining taxes (and export duties, which are not counted as taxes).
Deferrals will be granted to companies in the affected sectors and to SMEs, as well as to large companies whose incomes have fallen by more than 10%. Deferrals do not fully apply to foreign-owned companies.
In parallel, the authorities have set up separate deferral programs for bank debt, which are supported not only by regulatory relief but also by government interest rate subsidies and low-interest loans granted by the central bank to banks. Deferral schemes apply to households with incomes shrinking by more than 30%, as well as to SMEs and companies in affected sectors. A separate deferral program is also being considered for large companies.
Programs have been set up to support new low-cost bank loans, which are supported in the three ways mentioned above, as well as by guarantees from the state or the state-owned VEB.RF (formerly Vnesheconombank). The aim is to create mortgage lending and credit for SMEs. In addition, companies in affected sectors as well as listed system companies can receive credit for salaries and other current expenses.
6.1.1 ​Budget dynamics - results
Contrary to the global trend of rapidly growing budget deficits and public debt, Russia maintained a surplus budget in April​ – even despite a massive drop in the crude price (-38% m/m). Still, analysts expect a deficit in May covered by new public debt.
67​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com