Regions will be allowed to defer federal taxes

Regions and municipalities will be allowed to give deferrals, installments and investment credits for federal taxes - but only for those that are credited to local budgets, the press service of the Ministry of Finance told Izvestia. The changes are planned to be introduced in 2025-2027.

Now the region can determine the grounds and procedure for the appointment of such benefits only on local fees - on property, transportation, gambling, as well as on land and trade fees. Now local authorities will be allowed to grant deferrals for federal payments, which are credited to the budget of the subject.

Regional budgets receive such federal fees as income tax, payment under the simplified taxation system, agricultural tax and fee under the patent system, recalled Vladimir Gromov, a senior researcher at the Tax Policy Research Laboratory of the IPEI of the Presidential Academy.

"Expanding the list of taxes, the payment terms of which can be regulated by regions and municipalities, will make the fiscal system more flexible and adaptive. Both subjects and business will benefit from it," the expert is sure.

However, there are likely to be risks of collusion between business and local authorities, as there are opportunities to provide benefits to companies that do not fit the criteria for their receipt, says Freedom Finance Global analyst Vladimir Chernov.

Read more in Izvestia's exclusive article:

Time for locals: regions will be able to give businesses a deferral of federal taxes