Lifting Limitations on the Period of Applying a Profits Tax Concession for Medical Organizations

Under the regulation now in force, medical organizations can apply a 0% rate of profits tax, but this tax concession is only valid until 1 January 2020.

A draft law entitled "On Amending Parts One and Two of the Tax Code of the Russian Federation (In respect of Implementing the Basic Budget, Tax and Customs Tariff Policy Directions for 2019 and the Planning Period of 2020 and 2021)" was published on 15 March 2019. The draft law was developed by the Ministry of Finance of Russia and suggests maintaining the 0% rate of profits tax on a permanent basis for organizations engaged in medical activities.

Current status of the draft law: the draft law has been undergoing public discussion since 15 March 2019 (https://regulation.gov.ru/projects#npa=84113).

Draft Law on Providing a Tax Deduction for Buying Essential Medicines Has Been Submitted to the State Duma

The Russian Government has recently introduced to the State Duma a draft law that deals with providing tax deductions to individuals in connection with income tax, if such individuals acquire so called "essential" medicines (ie medicines important or necessary for life).

This rule is not completely new. At present, such tax deduction exists but was introduced into the law in the beginning of the 2000s and since that time the list of medicines applicable for the tax deductions has become significantly out-of-date.

The draft law links such list to the list of essential medicines that is updated annually and currently includes more than 700 items. The Government sees this as a tool for increasing the availability of essential medicines and ensuring a more economically just and balanced mechanism of offering them to individuals.