Repik calls for investment-based treatment in Russian profit tax changes

Delovaya Rossiya chairman Alexey Repik opposed applying the same profit tax increase to companies investing their earnings and businesses withdrawing passive income. In an RBC interview, he called for tax treatment linked to reinvestment.

Repik argued that a rise of 1–2 percentage points now would seriously damage the investment cycle. He said company profits fund 60% of investment in Russia, an estimate offered by the business association's chairman.

He recalled proposing a 30% rate himself and said it could even reach 35% if companies could reduce it by 25 percentage points through a deduction for reinvested profits.

Delovaya Rossiya separately proposes a deferred investment deduction. Under the plan, a company could obtain a special tax certificate after its spending was confirmed. After five years, it could deduct up to 50% of its investment from tax on the project's future profits. Repik said the refund should be funded by the additional taxes generated by the new enterprise.

The general profit tax rate rose from 20% to 25% on January 1, 2025. Amid proposed budget changes for 2027–2029, large businesses had suggested a temporary increase of 0.5–1 percentage point for all companies instead of levies on individual industries.

RBC reported that Vladimir Putin instructed the government on October 15 to examine the proposed investment tax certificate.