Russia’s ministry set to tax Apple, Google and Facebook

The Russian State Duma may consider a draft project which provides for a shift in the country’s policy towards international digital corporations, RBC reports.

The draft project “Guidelines for the budget, tax and customs tariff policy in 2020 and planning period of 2021-2022’ has been developed by the Finance Ministry.

US companies Google, Facebook and Apple are known to pay income tax at the place of registration of the headquarters. The European offices of these corporations are based in Ireland since the local income tax rate anounts to 12.5%.

In turn, Russia intends to amend the law and make digital companies pay taxes in the country of their users’ residence.

In January 2018, Google, Amazon, and Netflix registered to pay value added tax on electronic services (the so-called tax on Google).

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