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Ministry of communication does not want to increase tax burden for Google and Apple

It seems that chief of ministry of communication (mincom) works independently of his office. As reported RBC, mincom believes current Russian tax legislation is sufficient for taxation of foreign internet companies and in order to implement any new taxation mechanism first of all a definition of internet company must be given. There is even mincom’s review concernign to this issue. It was made 1st of March 2015 by order of Russian president’s assistant Igor Shchyogolev, who is author of idea to receive more taxes from these companies.

Mincom believes there must be clear and precise legal definition of internet company. Must be established precise criterion for legal entity in order to be eligible for status of internet company. Also procedures for registration of such legal entities should be prescribed, definite list of liabilities and obligation is a must. Mincom itself did not provide with definition of internet company.

Mincom also noted that state programm aiming to preclude tax avoidance already exists. Russian treasure has developed it and Russian government has approved it. This programm must be implemented in full till the end of 2020. For implementation of this programm 962 billions roubles are provided.