VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

Point of View

17 april
2012
Tax Policy 36

“We need to stay the course of drastic simplification of tax return preparation. In particular, we need to reduce the volume and complexity of the paperwork and the number of inputs. We also need to radically simplify the maintenance of tax records and bring tax calculations as close to accounting rules as possible.”

Vladimir Putin
At an extended meeting of the Finance Ministry Board, April 17
26 december
2011
Tax Policy 36

“I firmly believe that our tax system should ensure the interests of the state. <…>The interests of the state consist not only of collecting taxes but also ensuring comfortable working conditions for taxpayers. Our fiscal instruments should stimulate economic activity, not suppress it. And we certainly need to (I believe some things are just obvious) move toward reducing the number of required reporting documents.”

Vladimir Putin
At a meeting with Finance Minister Anton Siluanov, Deputy Finance Minister Sergei Shatalov, Head of the Federal Tax Service Mikhail Mishustin and Delovaya Rossiya President Alexander Galushka, December 26
21 december
2011
Tax Policy 36

“Clearly, our economy needs a decisive shift in terms of taxation. It needs a modern taxation system. We should also think about streamlining taxes that contribute to high-quality economic growth.”

Vladimir Putin
At a conference of the national association Delovaya Rossiya (Business Russia), December 21
8 december
2011
Tax Policy 36

“My personal opinion is that we can meet social obligations only on the basis of economic growth, and that economic growth requires light taxation, efficient taxation as well as the implementation of budget obligations for people in need of support. It is necessary to ensure national security, defence, healthcare, education, pensions etc., because all this requires budget funding. But this also means that we should think about making this taxation less burdensome and more efficient, that’s certain.”

Vladimir Putin
At a meeting of the Russian Popular Front's Coordinating Council, December 8
21 november
2011
Tax Policy 36

“You play an important role in the work to establish a competitive business climate in the country. As such, you should develop a constructive dialogue with taxpayers and should handle the issues that arise in a considerate and thorough manner; you should help businesses and citizens have a good understanding off the intricacies and novelties concerning taxes, and not persecute them for minor errors. <…>This work should be based on respect for the rights of the conscientious taxpayer and the protection of their interests.”

Vladimir Putin
At an international tax conference, November 21
21 november
2011
Tax Policy 36

“We have a package of tax preferences in the economy, including simplified taxation of small business. Today, the tax burden on it is about 10% on average. The decisions that will relieve all healthcare and educational institutions of tax on profit entered in force the other day. This opens up broad opportunities for the flow of investment into these spheres and for launching projects based on public-private partnership.”

Vladimir Putin
At an international tax conference, November 21
21 november
2011
Tax Policy 36

“We have settled such a sensitive issue as tax control on transfer pricing. The relevant amendments to the Tax Code will become valid on January 1, 2012. They will help reduce to a minimum the opportunities for unjustified reductions of the tax base and tax evasion. Moreover, tax revenues to the budget will be distributed more evenly – taxes will remain where companies pursue their main economic activities.”

Vladimir Putin
At an international tax conference, November 21
21 november
2011
Tax Policy 36

“I consider the practice of tax rebates to be a big achievement as well and we must continue it. I’m referring to the right of all citizens to recover part of their income taxes if they had to pay for housing, medical treatment or education. These sums are not small – every year about 2.5-3 million people request tax rebates and the total payments reach about 50 billion roubles.”

Vladimir Putin
At an international tax conference, November 21
21 november
2011
Tax Policy 36

“First, tax inspections need to be as convenient and comfortable as possible for people and economic players. Second, we should strengthen the stimulating role of the tax system, primarily for the purpose of structural modernisation of the economy and the social sphere, and for supporting innovation. The fiscal burden should be distributed more fairly across various sectors of the economy. And third, we must ensure stable tax deductions at all levels of the budget system, from the federal down to the municipal level. <…>Finally, the fourth aim is to guarantee the predictability and stability of the tax system as a major condition for implementing long-term plans of national strategic development”.

Vladimir Putin
At an international tax conference, November 21
21 november
2011
Tax Policy 36

“The government’s policy is to consistently increase our treasury’s revenues, not only by increasing the overall tax burden on people and economic players, but also by improving the quality of tax administration, encouraging economic development and ensuring the necessary rate of economic growth, thereby expanding the tax base.”

Vladimir Putin
At an international tax conference, November 21
7 july
2011
Tax Policy 36

“As for our tax policy in general, we will not be increasing the fiscal burden. The government’s goal is to ensure a fairer distribution of the tax burden. This is why tax changes will concern, above all, the industries that work in a favourable foreign policy environment.”

Vladimir Putin
At a Government meeting, July 7
23 may
2011
Tax Policy 36

“Amendments to the Tax Code will soon be adopted. Revenues from patents will be almost completely passed on to municipalities – some 90% of them, to be exact. According to preliminary estimates, efficient use of the patent system can help local authorities attract billions of roubles, which is tens or even maybe hundreds of times more than what they currently have. So, municipalities will receive a powerful tool with which to replenish their budgets.”

Vladimir Putin
At a meeting of the Presidium of the Presidential Council on the Development of Local Government, Pskov, May 23
18 may
2011
Tax Policy 36

“We need to make the necessary amendments to the Tax Code to protect the state's interests. Of course, this must be done extremely cautiously, carefully, following the well-known medical rule – do no harm. We need to make such amendments absolutely transparent, uniformly understood and, most importantly, consistently applied to all economic actors.”

Vladimir Putin
At a meeting on tax legislation related to transfer pricing, May 18
20 november
2010
Tax Policy 36

“The tax service is not a body that makes money, but one that takes it away. And yet, any rational person understands the important role the tax services play in any economy and any state. It is important, of course, that the legislative, legal, and regulatory framework of the tax service has been properly developed. But how the process of administration is organised is no less important. I want to thank all the employees of the tax service for their work.”

Vladimir Putin
At a meeting with Mikhail Mishustin, head of the Federal Tax Service, November 20
17 september
2010
Tax Policy 36

“Our approach is to avoid a general tax increase. For example, the corporate profit tax rate remains low (20%). On the other hand, social security premiums will grow in 2011. We have no other choice but to raise premiums because we need to pay good pensions to our senior citizens and we need the funds to modernise the healthcare system. But even in these circumstances we found a way to keep social security payments lower for IT companies, residents of innovation zones, media companies and small innovative enterprises established at universities.”

Vladimir Putin
At the 9th International Investment Forum Sochi-2010, September 17, Sochi
28 july
2010
Tax Policy 36

“We find it unreasonable to increase taxes, taking into account that pensions and other social contributions will rise in 2011. However, we find it possible to increase the financial burden on those economic sectors which have enjoyed low tax rates for a long time and which enjoy high global prices. The revision of tax rates will be connected with the growth of budget spending in the priority areas that have already been mentioned.”

Vladimir Putin
А meeting of the Commission on Budgetary Planning for the Upcoming Fiscal Year and the Planning Period , July 28
27 july
2010
Tax Policy 36

“It's easy to understand the desire of local governments to set the land taxes as high as possible, because the proceeds go to the municipal budget. However, this all too often increases the tax burden on businesses and hampers long-term investment projects. Thus, local governments gain a rouble today to lose dozens or perhaps even hundreds of thousand roubles tomorrow as they rob themselves of potential tax revenues. So I call on our colleagues to be more flexible about land taxation, lower rates to support social projects, small and medium-size business initiatives and innovative industries.”

Vladimir Putin
At a meeting of the Government Presidium, 19 july
20 may
2010
Tax Policy 36

“Tax policy is one of the most important instruments we have for reaching long-term goals. Today we must finalise our plans in this area for the next year, that is, endorse a tax package designed to encourage innovation in the real economy. It compensates for the rise in tariffs on mandatory social insurance for high-tech companies. As we agreed, during the transitional period we will retain the 14% rate for residents in technology development special economic zones, software manufacturers, and innovation and research companies at higher educational institutions. Reduced rates will also be in place for the media until 2015. It also envisages changes in the rules regarding depreciation, specifies procedures for the calculation of R&D expenditures, a reduction in the number of documents required to prove eligibility for the zero VAT rate on exports and the three year-long exemption of new energy efficient equipment from corporate property tax, and so on”.

Vladimir Putin
At a Government meeting, 20 May
10 march
2010
Tax Policy 36

“We also have a system of patents for small businesses. The entrepreneurs who purchase patents at fixed prices will be free to do business with a minimal level of accounting standards and other administrative burdens and barriers. This fiscal arrangement is the most convenient for business, and so deserves to be expanded.”

Vladimir Putin
At a meeting on tax policy, Moscow, March 10, 2010
10 march
2010
Tax Policy 36

“Last but not least, educational, research, cultural and healthcare non-profit organisations should be exempted from the profit tax, which will give them considerably more leeway to do their jobs. And in future, we may transfer some budget-funded contracts to NGOs. Experience has proved that this measure encourages competition to provide public services and improves such services.”

Vladimir Putin
At a meeting on tax policy, Moscow, March 10, 2010
10 march
2010
Tax Policy 36

“We have innovative businesses that even a small increase in taxes could force to cut back on development. We are willing to keep their premiums at 14%, which is practically what they pay now. We should also re-examine the official list of industries eligible for this privilege. On the whole, we should pay the most attention to high-tech industries, with their unique products.”

Vladimir Putin
At a meeting on tax policy, Moscow, March 10, 2010
10 march
2010
Tax Policy 36

“Companies switching to new energy-saving equipment will be entitled to more incentives, and may even be exempted from property taxation for three years.”

Vladimir Putin
At a meeting on tax policy, Moscow, March 10, 2010
10 march
2010
Tax Policy 36

“The burden on payrolls will increase next year. This will certainly be the most acute problem in the near future. As you know, we have decided to increase mandatory social insurance payments. Otherwise, it would have been impossible to achieve financial stability in the pension system while raising the older generation's living standards at the same time. However, we have put off a tax increase due to the economic crisis. This year premiums will remain frozen at 26%. We must find resources so we can increase the financial burden gradually over the course of next year.”

Vladimir Putin
At a meeting on tax policy, Moscow, March 10, 2010
13 january
2010
Tax Policy 36

"In 2010, companies with annual revenues below 60 million roubles will be able to begin using simplified taxation schemes. This is an important policy for the support of small business. But along with that, we must pursue other policies to stimulate entrepreneurship and create more jobs. This remains an issue of high importance for this year".

Vladimir Putin
At a Government Presidium meeting, January 13, 2010
25 may
2009
Tax Policy 36

"In addition, I particularly emphasise that future optimisation of the tax system will remain on the agenda. So, in 2010 the upper income allowance that allows small businesses to move to a simplified system of tax assessment will be increased from 30 to 60 million roubles. Although, as announced earlier, there will be no subsequent indexation. We see this as an anti-crisis measure."

Vladimir Putin
At a meeting of the Government Presidium, Moscow, May 25, 2009
25 may
2009
Tax Policy 36

"Strengthening the tax system's incentivising role is as urgent an issue as ever, above all in order to resolve the Russian economy's key problems. This includes increasing the efficiency of natural resource exploitation, introducing energy efficient technology, encouraging innovative solutions in business and supporting companies' modernisation."

Vladimir Putin
At a meeting of the Government Presidium, Moscow, May 25, 2009
25 may
2009
Tax Policy 36

"At the same time, we need to securely guarantee the fulfilment of the tax system's fundamental function: ensuring the solvency of the state. For this we need to refine the administration of the tax system and cleanse it of all the well-known tax evasion schemes, which have become ever more sophisticated of late."

Vladimir Putin
At a meeting of the Government Presidium, Moscow, May 25, 2009
25 may
2009
Tax Policy 36

"the anti-crisis package included a significant reduction to the fiscal burden on business. I am referring to lowering the tax on natural resources production, profit, small business and so on. In total, this amounts to approximately 700 billion roubles that will remain in the economy."

Vladimir Putin
At a meeting of the Government Presidium, Moscow, May 25, 2009
27 april
2009
Tax Policy 36

"Conditions will be created next year for the introduction of the local property tax, which will replace the present-day land rent and estate tax. We mean not to increase tax rates but redistribute the tax burden on real estate, and provide protection and privileges for low-income people and holders of low-price property. At the same time, we will create prerequisites for higher, market-based tax rates for the owners of huge flats, posh houses and vast land plots."

Vladimir Putin
At a meeting of the Government Commission for Budgetary Project Planning, Moscow, 27 April, 2009
27 april
2009
Tax Policy 36

"We need to streamline taxation, with special attention to the improvement of fiscal administration. Our fiscal system should increase its transparency and get all the easier for corporate and private taxpayers. We must put an end to redundant declarations, certificates and other cumbersome papers."

Vladimir Putin
At a meeting of the Government Commission for Budgetary Project Planning, Moscow, 27 April, 2009
19 march
2009
Tax Policy 36

“Let me remind you of the main decisions made as part of the tax reform. Fundamental changes have been introduced in the tax administration rules in order to protect the rights of honest tax-payers. The tax burden has been eased, in particular, a flat income tax was set at 13%, one of the lowest rates in Europe. The profit tax, VAT and the Single Social Tax have been reduced. Special regimes have been introduced for small businesses, stimuli have been strengthened for investment in scientific research and innovation, education, healthcare, and housing construction. The taxation system in agriculture has been simplified. Taxes continued to be reduced in the second half of 2008 as an anti-crisis measure. Of course, we will revisit the issue of improving the tax system in the future.”

Vladimir Putin
Government meeting, Moscow, 19 March 2009
19 march
2009
Tax Policy 36

“In spite of the difficulties with the filling of the treasury it is inadmissible for the tax, customs and any other fiscal bodies to revert to the practice of "terrorizing" business. Their main task must remain the same: monitoring compliance with tax legislation.”

Vladimir Putin
Government meeting, Moscow, 19 March 2009
27 january
2009
Tax Policy 36

“A bill on streamlining the taxation of householders' societies, housing construction cooperatives and other housing management companies. The bill envisages exemption from value added taxation of housing and public utilities provided by managerial companies in multi-family dwellings. The bill will fill in a major gap in the fiscal legislation, which is presently an obstacle to the emergence of latter-day housing managerial agencies.”

Vladimir Putin
Meeting of the Government Presidium, Moscow, 27 January 2009
20 november
2008
Tax Policy 36

“I suggest a number of other steps. I propose reducing the rate of profits tax by four percent starting January 1, 2009. This should be done at the expense of the federal part of this tax. The amount involved is more than 400 billion roubles and all this money will continue working in the economy next year. Also, 15% is the current fixed tax in the simplified taxation scheme for small business. To further reduce the tax burden on small business, and create more impetuses for its development, I suggest giving regions the right to reduce this rate by 10%, that is, to five percent.”

Vladimir Putin
Speech at United Russia’s 10th congress, Moscow, 20 November 2008
20 november
2008
Tax Policy 36

“Businessmen often complained to me that the tax authorities delay the VAT return. I believe that these authorities should adopt a completely different attitude on this matter, and return the VAT much faster. They could suggest an optimal model for major tax payers. We had such practice before. The current debt on VAT return should be reduced to the minimum before this year expires.”

Vladimir Putin
Speech at United Russia’s 10th congress, Moscow, 20 November 2008
20 november
2008
Tax Policy 36

“I have instructed the Ministry of Finance to suggest measures to support regional budgets. Moreover, considering the special situation with the profits of enterprises in the fourth quarter, I propose they be given the right to pay taxes on the real profits they have received since the start of this year. This decision will allow them not to be taxed on profits which so far exist only on paper. In this way, business will not be crediting the state for free, while the regional budgets will not have to reimburse companies for overpaid taxes at the beginning of the next year. Now I would appreciate your attention! I am asking our deputies in the State Duma to adopt the required amendments to the Tax Code allowing this norm to become valid in a week, starting November 28. This is important because taxes are due on this date.”

Vladimir Putin
Speech at United Russia’s 10th congress, Moscow, 20 November 2008