Friday, March 6, 2015

The Kremlin has proposed increasing taxes for Apple and Google – NEWSru.com

During the meeting, held recently in the presidential administration, the question was raised about the additional taxation of foreign Internet companies like Apple and Google.

According to “Vedomosti” , The meeting was attended by members of the AP working with presidential aide Igor Shchegolev, Roskomnadzora representatives and the State Duma. The reason for the meeting was the case that the Antimonopoly Service has got against Google’s complaint “Yandex”. Also responsible for convening the meeting could serve as the intention of the European Commission make tech companies from the United States, primarily Google and Microsoft, to pay taxes within the EU.

According to the newspaper, the meeting participants agreed that Google and Apple are definitely underpaid taxes to the Russian budget. For example, when the Russians are buying in online stores AppStore, iTunes and Google Play apps, music and movies for their mobile devices, these payments are not taxable in Russia – purchases are made directly from foreign companies.

On the basis of this , the meeting agreed on the need to develop a mechanism of additional taxation. In particular, it was proposed to decide how to make foreigners pay VAT on income from the sale of content via cloud services.

One of the interlocutors edition reported that during the discussion of the idea were worked prohibit direct payment card applications with Russian banks and charge VAT “on the road”. As a result of the presidential administration did not take concrete decisions, but agreed on the need to organize a public discussion on this topic at the site Mediakommunikatsionnogo Union and the State Duma. It is expected that this discussion will take place before the end of March.

The source of “Vedomosti” in a foreign Internet companies denied claims officials. He noted that the company did not violate Russian tax legislation, and their income from the sale of applications through online stores in Russia are not subject to VAT in accordance with the law. If the law will be amended, the Company will pay the VAT, but this will increase the cost of the application and will facilitate the transition of users to legitimate content.

In turn, the first deputy general director of Mail.ru Group Dmitry Sergeev said , that the state should not only introduce new taxes for foreign technology companies, but also to support Russian.

“Mail.Ru Group conducts its business in many countries, but the foundation of our revenue is business in Russia. We also pay taxes in Russia. In our view, the taxation of foreign Internet companies Russian taxes must be accompanied by real incentives for companies that are developing new Russian high-tech products and services, as is done in many countries, “- said Sergeev.

According to him, the company has already drawn attention to the importance of the real launch VAT exemption for developers of Internet technology.

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