Putin Orders Windfall Tax on Russian Companies to Help Fund War
- Large companies, foreign-owned subsidiaries, face 10% tax
- Measure may raise 300 billion rubles, finance minister said
Vladimir Putin chairs a Security Council meeting via a video conference at the Kremlin in Moscow on Aug. 4.
Photographer: Alexander Kazakov/Pool/AFP/Getty ImagesThis article is for subscribers only.
President Vladimir Putin approved a windfall profit tax on large Russian companies as the government seeks additional sources of income for the budget against the backdrop of massive spending on its war in Ukraine.
Companies will be subject to a 10% tax paid on the difference in profit in 2021-2022 compared with 2018-2019. The law that comes into force in January will apply to businesses that made an average annual profit of more than 1 billion rubles ($10.5 million) in that period.