Tax law changes effective August 31, 2023

From August 31, 2023, a number of changes in tax legislation come into force, which may affect many taxpayers.

In particular, changes to profits tax may be noted:

• The list of types of insurance for which it is possible to reduce the tax base for profits tax becomes open. In the new wording, expenses for “other types of voluntary property insurance are also accepted in tax accounting if, in accordance with the legislation of the Russian Federation, such insurance is a condition for the taxpayer to carry out its activities and (or) if such insurance is aimed at compensating expenses (losses, lost income) taken into account for taxation purposes, which may arise as a result of an insured event”.
• Employers may reduce the tax base for profits tax by amounts of reimbursement to remote workers for the use by them of their own or leased equipment, software, hardware and other means. The amount of reimbursement may be determined in one of two ways: a) by a local normative act (LNA) or labor agreement, b) on the basis of documented expenses. In the first case, the amount of reimbursement will be limited by law – no more than 35 rubles per working day. The “Based on documented expenses” method is effective by default, unless the first option is set forth in the LNA or labor agreement.
• The initial value of intangible assets may vary. By analogy with the rules for fixed assets, a change in value is possible in the event of modernization.

In addition, from 31.08.2023, a change in VAT will come into force – the cost of advertising materials, the transfer of which is exempt from taxation, will increase to 300 rubles. In the current version, the value limit is 100 rubles.