Le Lézard
Classified in: Science and technology, Business
Subject: AVO

Federal Tax Service of Russia Continues to Stand by Its Comments on Russia's Paying Taxes Ranking in the "Doing Business 2020"


MOSCOW, Nov. 11, 2019 /PRNewswire/ -- Federal Tax Service of Russia considers the compilation of "Doing Business 2020" ranking not transparent in regards to Russia paying taxes, claiming that the ranking significantly differs from real business practices in Russia. According to the 2020 ranking, the annual time required to prepare, ?le and pay three major taxes is 159 hours while an independent customer survey conducted by Russia's leading accounting software company, 1C, and involving 909 companies, reveals that it only takes 32 hours. This gap brings into question the ranking of the World Bank's "Doing Business" contributors.

Over the years Russia's Ministry of Finance and its tax service authority approached the World Bank requesting to provide specific reasons behind the assessment but were never given any clear answers.  Disclosure of such details might help improve Russia's tax administration system and consequently improve the business environment in the country. From the Federal Tax Service's perspective, this is one of the aspects that contributes to confusion on the "Doing Business" ranking.

It is also uncertain why a significant reduction of indicators in the social contributions filing forms did not result in the improvement of the Russian taxes ranking. A recent reform that has reduced the number of government agencies involved in the collection of health care and social contributions was interpreted by the "Doing Business" experts as the one increasing the number of payments and considerably worsening Russia's position in the rating. 

Paying taxes is not the only ranking that raises questions. Starting a business is another indicator where the Federal Tax Service questions its ranking. Existing business practice suggests that a companies' founders would either make a personal visit to the company register and would not need a notary or use a notary with legally recognized digital connection to the registry and would not need to visit the registry. In contrast to assessor's opinion this is one procedure, not two. The World Bank also missed the cancelation of the registration fee when registration application is submitted digitally and over 50% of application in Russia are digital significantly dropping Russia's rating.

All there is left is to guess what input provided by contributors has formed the "Doing Business 2020" results argues a representative of the Federal Tax Service. Russia's Federal Tax Service believes that a more transparent approach would help addressing issues of improving the business climate in Russia.

SOURCE Federal Tax Service of Russia


These press releases may also interest you

at 22:00
Tata Elxsi, a global design and technology services company, partnered with Tata Motors in developing their unified Connected Vehicle Platform that powers the Nexon EV range of electric cars. With a collaborative approach, Tata Motors & Tata Elxsi...

at 20:44
The Great Ruler, an original fantasy drama (the "Drama") currently being released by iQIYI, Inc. ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, has achieved domestic and international acclaim...

at 20:00
Sydney FC has renewed its partnership with AETOS Capital Group for a third consecutive AFC Champions League campaign. The deal will see the Australian Forex broker continue to be the Principal Partner of Sydney FC for...

at 19:35
NIPPON Platform Co., Ltd. (Head Office: Tokyo, Japan, Founder and CEO of Overseas Business: Jun Takagi) and Hana Bank (Head Office: Seoul, Republic of Korea, President & CEO: Ji Sung-Kyu) have entered into a strategic partnership to expand Hana...

at 19:00
Tata Elxsi, a global design and technology services company, partnered with Tata Motors in developing their unified Connected Vehicle Platform that powers the Nexon EV range of electric cars. With a collaborative approach,Tata Motors & Tata Elxsi...

at 18:05
LeddarTech®, an industry leader in LiDAR technology providing the most versatile and scalable auto and mobility LiDAR platform, announces today that it will exhibit the result from the collaboration with its Ecosystem partner Renesas at the AV20...



News published on 11 november 2019 at 04:48 and distributed by: