Interfax: Companies registered offshore will pay Russian taxes, receive no govt support – Putin

File Photo of Cash, Coins, Line Graph

MOSCOW. Dec 12 (Interfax) – Companies with Russian assets that are registered in foreign jurisdictions have to pay taxes according to Russian law, while at the same time will receiving no government support, state contracts, or VEB credits, Russian President Vladimir Putin has said.

“As nothing [has been done about this] in this sphere [‘de-offshoring’ the economy] this year, I have proposals,” Putin in an address to the Federal Assembly.

“The revenues of companies that are registered in offshore jurisdictions and belong to Russian owners – the end beneficiaries – have to be subject to our tax rules. Tax payments have to be made into the Russian budget. And a system needs to be thought out for collecting this money. In some countries with developed market economies a system like this is already being put into place. You want to be offshore? Ok, but the money comes here,” the president said.

“Companies registered in foreign jurisdictions cannot make use of state support measures, including credits from VEB or state guarantees. They also have to be shut off from access to the use of state contracts and contracts with structures the state is involved in. You want to make use of breaks, state support, and make profit, working in Russia [?] Register in a Russian jurisdiction,” Putin said.