The draft tax policy guidelines for 2014 and the 2015-2016 planning period were considered at the Government meeting on May 30, 2013.

The draft assesses implementation of the tax policy guidelines for 2013 and the 2014-2015 planning period, and outlines the Government tax policy priorities for 2014-2016. These include creating an effective and stable tax system to ensure fiscal stability in the medium and long term. Promoting investment, improving human capital, and increasing business activity remain the key objectives of tax policy.

The continued improvement of the tax system in 2014-2016 should include fine-tuning the existing tax system, raising additional revenue through improved tax administration, reducing the shadow economy, and levying taxes on excess profits from favourable foreign trade conditions.

The following tax incentives will be provided:

 ·        equal tax treatment for various types of individual investments;

·        expanding the list of socially important payments (incomes) which are exempt from the individual income tax;

·        more efficient property tax deductions;

·        more efficient financial instrument taxation;

·        creating favourable tax environments for investment in certain regions;

·        improving taxation of trade;

·        improving taxation of hydrocarbons and solid minerals production;

·        preserving the 30% rate (the 2013 rate) for insurance premiums to the state off-budget funds for most taxpayers and the non-personified rate of 10% in excess of the maximum base value for the calculation of insurance payments to the Pension Fund of the Russian Federation;

·        developing a mechanism to transfer the functions of administering insurance premiums to the Federal Tax Service of Russia;

·        simplifying tax accounting and harmonising it with standard accounting.

Measures to increase budget revenue in Russia include the following:

·        improving property taxation for individuals;

·        improving property taxation for legal entities;

·        indexing excise rates to reflect the real economic situation and the need to harmonise excise policy in Customs Union member-states;

·        preventing tax evasion through tax havens;

·        improving the supervision of banks’ execution of obligations on taxes and fees, as prescribed by Russian laws;

·        holding tax evaders, including those using shell companies, accountable;

·        taking other measures to improve tax administration with the help of electronic documents and interagency cooperation.