Companies that have sold their business in Russia must pay 10% of the transaction value to the budget

Due to the massive exodus of foreign companies from the Russian market, the Russian authorities have introduced a tax on the sale of businesses in Russia.

In particular, companies are now obliged to make a contribution to the Russian budget when selling their Russian assets. The amount will be at least 10% of half of the transaction value. This decision was made by the government commission of the Ministry of Finance for control over foreign investment in Russia.

In addition, if a company sells a business at a discount of more than 90%, the contribution will increase to 10% of the total transaction value.

The Russian government restricted the ability of foreigners to sell businesses in Russia in March last year after the start of the Russian invasion of Ukraine. At that time, the Russian government obliged them to submit an application with information about the parties to the transaction to the law commission and obtain its approval. The commission could refuse to grant the permit or issue it under certain conditions.

At the same time, the government approved the list of unfriendly countries, which included the United States, the United Kingdom, Canada, Japan, all EU countries, and other states.

Last December, the Law Commission published a list of requirements for companies from unfriendly countries that decided to leave Russia. For example, they were allowed to sell their business only at a discount of at least 50% of the price set during an independent evaluation.

Background. As a reminder, Danish Carlsberg announced plans to sell its business in Russia by the end of this spring.