Unique Experience of Commonwealth countries in Development of Tax Legislation Discussed at Tavricheskiy Palace

On 23May, a roundtable on “Application of the Model Tax Code for CIS Member Nations and Development of National Legislation in the Tax Sphere” was held at the IPA CIS headquarters – Tavricheskiy Palace.

The participants discussed the harmonization of national legislations regulating tax policy in the Commonwealth countries, considered the best practices in this area and raised the issues of taxation of companies working in the field of digital technologies. 

The event was organized by the Committee of the Federation Council of the Federal Assembly of the Russian Federation on the Budget and Financial Markets.

The meeting was chaired by member of the IPA CIS Permanent Commission on Economy and Finance, Deputy Chair of the Committee of the Federation Council of the Federal Assembly of the Russian Federation on the Budget and Financial Markets Andrei Epishin.

Chair of the Committee of the Federation Council of the Federal Assembly of the Russian Federation on the Budget and Financial Markets Anatoly Artamonov noted that this year had marked 25 years since the first part of the Tax Code of Russia was adopted, followed by the development of the Model Tax Code for the CIS Member Nations.

According to the MP, using the example of the Russian Federation, it can be said that a number of provisions of the Code can be used as a basis for improving tax legislation. In particular, these are provisions on the establishment of tax exemptions for a certain period of time, on the introduction of tax consultants to the participants of tax relations. For example, the tax on professional income for self-employed citizens, which was introduced in Russia, also first appeared in the Model Tax Code.

According to Director of the Taxation Policy Department of the Ministry of Finance of the Russian Federation Danil Volkov, one of the examples of successful cooperation between CIS countries is harmonization of excise rates on tobacco products and application of special tax regimes.

The participants considered the best practices in taxation and trends in tax administration.

Deputy Chair of the Committee of the Federation Council of the Federal Assembly of the Russian Federation on the Budget and Financial Markets Alexander Shenderyuk-Zhidkov spoke about the taxation of foreign companies and organizations working in the field of digital technologies.

Member of the Committee of the Senate of the Parliament of the Republic of Kazakhstan on Finance and Budget Bekbolat Orynbekov spoke about the tax legislation of the Republic.

Deputy Chair of the State Tax Service under the Ministry of Finance of the Kyrgyz Republic Adilet Dubanaev noted that the main directions of development of tax legislation in Kyrgyzstan are digitalization of tax administration, adaptation to new economic realities and creation of conditions for business development.

St. Petersburg had gained experience in the implementing the tourist experience. The city, as a subject of the Federation, in 2010-2011 had developed and adopted the Environmental and Social Codes, work was underway to create a Tax Code, said Deputy Chair of the Budget and Finance Committee of the Legislative Assembly of St. Petersburg Andrei Aleskerov.

The roundtable was also attended by Chair of the Standing Committee of the Council of the Republic of the National Assembly of the Republic of Belarus on Economy, Budget and Finance Vladislav Tatarinovich and Head of the Main Department of Tax Policy and State Payments of the Ministry of Finance of the Republic of Tajikistan Zavkibiek Shodiyon.