Moscow losing up to $3 bln due to law on transfer pricing
MUNICH, June 18 – RAPSI. Moscow is losing about $3.08 billion due to the implementation of the law on transfer pricing, Deputy Finance Minister Sergei Shatalov said at the Russian Economic and Financial Forum in Germany.
“There has been a significant redistribution of the financial streams of taxes which are paid to the budgets of specific regions. Moscow and St. Petersburg have been hit the hardest. In terms of Moscow, about 100 billion rubles leave Moscow for the regions,” Shatalov said.
The law on transfer pricing, under which the Federal Tax Service controls transactions between interdependent individuals, came into effect on January 1, 2012. Russia’s biggest tax payers will be able to coordinate the principles of pricing for such transactions with the tax service in advance, meaning this law will no longer apply to them.