Measures proposed by the President of Russia to support business under counteracting the spread of COVID-19

article 01/04/2020

The President of Russia have proposed the package of measures to overcome COVID-19 consequences.

The following measures are to support economy and business:

Measure Target
Deferral of payments on all taxes except VAT up to 6 months. Small, medium-sized and microenterprises
Deferral of payments on insurance premiums to social funds up to 6 months. Microenterprises
Permanent reduction of insurance premiums rate from 30% to 15% for salaries in excess of the minimum wage. In case of maintaining a salary of less than the minimum wage, the insurance premiums rate remains at 30%. Small and medium-sized enterprises
Deferral of payment on loans up to 6 months. Small, medium-sized and microenterprises
Providing state guarantees and subsidies. Enterprises of the real sector of economy
Moratorium on filing creditors' applications for bankruptcy of companies and collection of debts and fines within 6 months. Companies in sectors most affected by the epidemic
Taxation of 13% of income (interest on investments) on bank deposits and investments with a total amount exceeding 1 million RUB. Citizens of Russia
Increase of tax rate up to 15% on incomes transferred to foreign accounts.
Adjustment of double taxation agreements with foreign countries. Russia's unilateral withdrawal from agreements, in case of disagreement of foreign partners with such a proposal.
Monitoring of the situation by the Government of the Russian Federation in order to determine the need to expand and adjust the list of industries in need of support.

In addition, the Government of the Russian Federation is considering the possibility of implementing a collateral-free lending to small businesses through Sberbank and VTB with subsidized rates of up to 0%. This measure involves the repayment of borrowed funds within 6 months.