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Russian Tax Revenues rise 20%, Signaling a New Post-Sanction Reality

Posted by Tate Ulsaker on

Russia reports 20% year-on-year tax revenues not primarily from oil and gas sectors.

Russia reports 20% year-on-year tax revenues not primarily from oil and gas sectors.  In other words, the sanctions have failed and Russia has re-set their economy on a positive, and self-sufficient course without western involvement while also decreasing dependence on petroleum sectors.

The tax collection increases came from growing economic sectors such as technology and agriculture as well as advances in tax collection methods that help eliminate site audits. 

If you are earning and producing in Russia it is becoming more logical to pay taxes than to avoid them. Russia has the lowest and simplest tax system of any industrialized nation.  The effective corporate rates is between 20-24% and personal taxes are a flat 13%.

Russian tax revenue increases signal a new post-sanction reality.  In the near future, will Russia become an offshore manufacturing heaven for multinationals that seek minerals an educated workforce, a stable government and lower taxes? That is a big picture goal at work here behind these numbers.

 


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