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Foreign internet companies can be imposed harder in Russia

As reported RIA Novosti, Russian ministry of communication (Mincom) considers opportunity to impose more taxes on foreign companies providing their clients residing in Russia with its services. The chief of Mincom believes foreign internet companies should pay taxes at the place where the end customer resides. And it is not about Google and Apple. It should concern all foreign companies.

“The place where the end customer resides is not taken in account when electronic services are provided on exterritorial basis. When you purchase certain services – films, music, adds – you make payments and it is in no way connected with legal tax field of Russian Federation.” – said minister.

“As a matter of fact it is black market, black market for Russia in respect of foreign companies providing their services in Russia from abroad.” The chief of Mincom also admitted that the taxation is a matter of Russian Treasury’s competence, but his office can provide it with any kind of technical help.