MOSCOW, November 26 (RIA Novosti) - Russian President Dmitry Medvedev has signed a law liberalizing tax legislation to help domestic businesses weather the financial crisis, the Kremlin press office said on Wednesday.
The amendments to the Tax Code, in particular, stipulate cutting profit tax to 20% from the current 24% at the expense of the federal budget to ease the tax burden on domestic businesses.
At a congress of the ruling United Russia party on November 20, Prime Minister Vladimir Putin announced new government measures to help domestic companies weather the financial crisis, including cuts in profit tax.
"We must cut profit tax by 4% from January 1, 2009 at the expense of the federal budget. This will cost 400 billion rubles [$14.5 billion]. All this money will stay in the economy next year, and will work in the economy," Putin said.
Russia's current 24% profit tax is paid to the federal budget (6.5%) and regional budgets (17.5%).
