Russia to impose windfall tax on large businesses

Russian President Vladimir Putin has signed a law obliging large companies to pay a windfall tax on excess profits, according to a posting on the portal for legal information on Friday.

The levy will target any businesses whose profits in 2021-2022 exceeded 1 billion rubles ($10.5 million), charging 10% on any excess profits earned during that period.

The move, set for a January 2024 deadline, would reportedly add more than $3 billion to the state coffers over the next three years, according to RIA Novosti.

Companies established after 2020 and energy sector firms are exempted from the payment. The Finance Ministry has previously explained that oil and gas companies, as well as coal mines, were exempted, as additional levies had already been imposed on them this year.

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