Additional Coverage:
- Russia confirms it’s going to make it more painful for companies to quit the country (newsbreak.com)
Russia Raises Exit Tax for Foreign Companies
Russia has announced plans to hike taxes on foreign companies selling off their Russian assets. The tax rate will increase from 15% to 25%, with an additional 5% penalty in each of the next two years, totaling 35%.
The move comes after several major international companies left Russia following its invasion of Ukraine. Russia initially imposed penalties on departing companies, which have reportedly boosted its coffers.
However, the process of exiting Russia can be complex and costly for foreign firms. They have reportedly incurred over $107 billion in writedowns and lost revenue.
The new measures aim to encourage foreign companies to stay in Russia despite sanctions. They follow pressure from the West for companies to divest from the country.
Over 400 companies have fully exited Russia, while 1,700 continue operations. Many others have scaled back or suspended operations.