Ministry of Economic Development has proposed to reset the tax on profits and income of investors of high-tech companies
The Ministry of Economic Development has developed amendments to the Tax Code, which will give benefits to investors of high-tech companies. The bill was approved by the government on Thursday. The bill concerns the reset of tax on income from the sale of securities that circulate in the sector of the market for innovation and investment ( MII ) of the Moscow Stock Exchange, said Deputy Head of the Ministry of Economic Development Oleg Fomichev. The exemption will be extended both to legal entities and individuals - investors and will be valid until the end of 2022, Fomichev reports. For the first of them, the 20% income tax will be set to zero, for the second, a 13% income tax, explains private lawyer Kirill Rurikov. In the meantime, to get the right to reset the tax, you must be the owner of the securities for at least five years. The Ministry of Economic Development has proposed reducing this period to one year.
The five-year tenure of shares significantly reduces the inflow of capital into high-tech projects; the words of Prime Minister Dmitry Medvedev are in the transcript of the government meeting. The fact is that innovative companies attract investors' money by issuing securities for the period of their projects, and usually this is one or two years, the prime minister explained. The period of preferential taxation of investors' profits from the sale of shares in most cases ranges from one year of ownership of securities (this period is determined, according to the prime minister, in the Netherlands, Luxembourg, Belgium, Switzerland, the United Kingdom and the United States) to two years (in Hong Kong and Singapore) but not more. Tax breaks will help improve the investment climate in the financial crisis, Fomichev hopes.
He also notes that these considerations are valid for already established companies that can afford to place their securities on the stock exchange. For them, the exemption will indeed be useful, since it provides an additional 13% of the yield on attractive securities, says Alexey Soloviev, director of the venture fund of Prostor Capital . But for small companies, entering the stock exchange does not make sense, since the costs of listing and maintaining publicity outweigh the benefits that the company receives (including investor money), explains Solovyov. Therefore, the changes will not affect such companies that have a significant market share.
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Reducing the tenure to one year gives a clear signal to potential investors to buy companies' securities, and they will be able to more effectively attract investment, Alexey Kachay, director of the Department of Infrastructure and Educational Programs, explained to Vedomosti.
Tax relief is unlikely to facilitate the transfer of companies from foreign jurisdictions to Russia, the Moscow Stock Exchange, as well as attracting foreign money to companies already located there, Rurikov said. To attract investment, jurisdiction is not as important as the usual characteristics: potential growth, team competence, and the general economic situation in the country, he explains.
The five-year tenure of shares significantly reduces the inflow of capital into high-tech projects; the words of Prime Minister Dmitry Medvedev are in the transcript of the government meeting. The fact is that innovative companies attract investors' money by issuing securities for the period of their projects, and usually this is one or two years, the prime minister explained. The period of preferential taxation of investors' profits from the sale of shares in most cases ranges from one year of ownership of securities (this period is determined, according to the prime minister, in the Netherlands, Luxembourg, Belgium, Switzerland, the United Kingdom and the United States) to two years (in Hong Kong and Singapore) but not more. Tax breaks will help improve the investment climate in the financial crisis, Fomichev hopes.
He also notes that these considerations are valid for already established companies that can afford to place their securities on the stock exchange. For them, the exemption will indeed be useful, since it provides an additional 13% of the yield on attractive securities, says Alexey Soloviev, director of the venture fund of Prostor Capital . But for small companies, entering the stock exchange does not make sense, since the costs of listing and maintaining publicity outweigh the benefits that the company receives (including investor money), explains Solovyov. Therefore, the changes will not affect such companies that have a significant market share.
')
Reducing the tenure to one year gives a clear signal to potential investors to buy companies' securities, and they will be able to more effectively attract investment, Alexey Kachay, director of the Department of Infrastructure and Educational Programs, explained to Vedomosti.
Tax relief is unlikely to facilitate the transfer of companies from foreign jurisdictions to Russia, the Moscow Stock Exchange, as well as attracting foreign money to companies already located there, Rurikov said. To attract investment, jurisdiction is not as important as the usual characteristics: potential growth, team competence, and the general economic situation in the country, he explains.
Source: https://habr.com/ru/post/294688/
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