Scientific journal NRU ITMO
Series "Economics and Environmental Management"
Registration certificate ЭЛ № ФС 77 – 55411 от 17.09.2013
registered by the Federal Inspectorate Service for Communication, Information Technologies and Communication Media

2015 (published: 02.12.2015)

Number 4(23)

Home > Issue > Impact of crisis for tax conditions in Russian companies’ debt financing

UDC 336.22

Impact of crisis for tax conditions in Russian companies’ debt financing

Pokrovskaia N.V.

We study the impact of tax law restrictions on the amount of interest on debt, which can reduce base of the corporate profit tax. We analyze changes in the tax environment of financing in Russia in 2002-2015. Tax limitation and market level of interest on borrowed funds were related. It is concluded that the refinancing rate, which is used in various areas of taxation, poorly reflects the level of market interest rates. The difference between the refinancing rate and the market interest rate is especially evident with the onset of the financial crisis. The most significant was the difference between the market interest rates on loans in foreign currency (US dollars and euros) and the corresponding tax limitations. The abolition of interest rates’ control for tax purposes between independent entities offsets the negative impact of the pre-2015 tax legislation. It requires the use of critical thinking about using the refinancing rate in other areas of taxation
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Keywords: tax, credit, corporate profit tax, debt financing, interest.

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