IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2013 | Removal date: open ended
Still in force

Tax or social insurance relief

On September 19, 2012, the State Duma, the Lower House of the Russian Parliament, adopted amendments to the Federal Tax Code, which have the aim to support farmers in light of Russia's accession to the WTO. The amendments were approved on September 26, 2012, by the Federation Council, the Upper House of the Russian Parliament. Finally, on October 2, 2012, the President of the Russian Federation signed the amendments to the Federal Law FZ 161 "On amendments to Part Two of the Tax Code of the Russian Federation and on the cancellation of some provisions of the Russian legislation". The law enters into force on January 1, 2013, but not earlier than one month after its official publication, and not earlier than the beginning of the tax period (in the case of certain taxes).
The beneficial amendments of the farmer taxation comprise:

  • To exempt private farmers and the heads of farmer enterprises from the payment of individual income taxes (payable by physical persons in the Russian Federation) on regional/federal budget grants.
  • To prolong for an indefinite time period the zero income (profit) tax for agricultural producers. This tax benefit was originally planned to end in 2013. This benefit concerns only farmers, who have not switched to the regime of a unified taxes.
  • To extend the list of agricultural products, which are subject to a preferential VAT rate of 10 per cent. The following new pedigree products are added to the list: cattle, pigs, sheep and goats, horses; hatching eggs; semen of bulls, pigs, sheep, goats, and stallion; embryos of cattle, pigs, sheep, goats, and horses. Currently, the standard VAT rate on these products is set at 18 per cent.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

021 Live animals
0101 Live horses, asses, mules and hinnies.
010121 Purebred breeding animals
010129 Other
0102 Live bovine animals.
010221 Purebred breeding animals
010290 Other
0103 Live swine.
010310 Purebred breeding animals
010391 Weighing less than 50 kg
010392 Weighing 50 kg or more
024 Reproductive materials of animals
0511 Animal products not elsewhere specified or included; dead animals of Chapter 1 or 3, unfit for human consumption.
051110 Bovine semen
049 Other aquatic plants & animals
0511 Animal products not elsewhere specified or included; dead animals of Chapter 1 or 3, unfit for human consumption.
051199 Other

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