Federal investment tax credit to be formalized in govt resolution - Siluanov

MOSCOW. July 3 (Interfax) - The federal investment tax deduction that Russia will introduce in 2025 as part of a package of measures to overhaul the tax system will be enshrined in a government act.

The government submitted amendments for the second reading of the bill to modernize the tax system to the State Duma on Wednesday, the Finance Ministry reported.

The "proposals of businesses and members of parliament voiced in public hearings on the bill were taken into account" when drafting the amendments, Finance Minister Anton Siluanov was quoted as saying by the ministry's press service.

"As for the federal investment tax credit, taking into account discussions with representatives of business association, the decision at this stage will be formalized in the form of a resolution of the Russian government, a draft of which will be presented to the State Duma Budget and Taxes Committee before the second reading," Siluanov said.

The tax changes will, among other things, raise the profit tax rate to 25% in 2025 from the current 20%, but they will also include a federal deduction intended to encourage businesses to invest.