--- title: News Tax Notes description: Russia’s Ministry of Finance is exploring new approaches to taxing digital companies, according to recently released budget guidelines for 2020-2022. image: https://info.taxnotes.com/hubfs/buildings-business-commerce-927485-3.jpg --- [![taxnotes](https://info.taxnotes.com/hs-fs/hubfs/TN_Logo_1066x105px.jpg?width=837&height=220&name=TN_Logo_1066x105px.jpg "taxnotes")](http://www.taxnotes.com) ### Russia Examines New Ways to Tax Digital Companies AMANDA ATHANASIOU OCT. 7, 2019   Russia's Ministry of Finance is exploring new approaches to taxing digital companies, according to recently released budget guidelines for 2020-2022. A budget and tax policy document released by the MOF October 3 says legislation under which profits would be declared in the jurisdictions of consumers and users of digital services should be reviewed to stem revenue losses. Deficiencies in digital taxation are contributing to lower tax rates for digital companies than for those in other sectors because digital companies generally don’t have significant physical footprints where their users reside, according to the document. It notes that several countries have already introduced new digital taxation measures that will also be considered in Russia in developing “new approaches to taxation of the income of digital companies.” Foreign entities providing electronic services in Russia are already required to register with Russian tax authorities and collect and remit VAT on those services. The Russian government considered draft legislation on the issue as early as 2016, when the MOF reportedly said that the legislation was meant to implement action 1 of the OECD’s base erosion and profit-shifting project. The MOF’s latest declaration echoes actions by France and the United Kingdom, which have unilaterally developed digital services taxes without waiting for international consensus on adapting tax rules for the digital age. The budget document also calls for the introduction of domestic software to the competitive market, the use of a cloud-based digital platform for government services, and the “creation of a system of legal regulation of the digital economy, including the creation of a legislative framework for the formation of a single digital environment” in order to introduce more digital technology to the economy. ### **More Articles like this** If you like this article, check out more free articles like this [here](https://www.taxnotes.com/featured-news) ### **SIGN UP FOR FREE TRIAL** Sign up for free trial to have unlimited access to tax news. No credit cards. No commitment. [![FreeTrial_Ver2_460x255](https://info.taxnotes.com/hs-fs/hubfs/FreeTrial_Ver2_460x255.png?width=460&name=FreeTrial_Ver2_460x255.png)](https://www.taxnotes.com/trial) ### **SUBSCRIBE TO OUR EMAIL LIST** Not on our email list yet? Subscribe to receive weekly newsletters #### About Us There is a reason why tax experts have been turning to Tax Notes every day for over 50 years. Tax Notes has more reporters and commentators dedicated exclusively to tax issues than any other news service, and it uncovers developing issues to make sure you know exactly what they mean for you. With unsurpassed tax news coverage, fully customizable email alerts, and searchable archives with over 4 million documents, there is plenty of evidence for why leading tax professionals rely on Tax Notes for timely, reliable, and comprehensive information.   #### Contact Us  1-703-533-4424   subscriptions@taxnotes.com  400 S. Maple Ave. #400, Falls Church, VA 22046 Copyright 2026 \[fa icon="chevron-up"\] ![](https://px.ads.linkedin.com/collect/?pid=635179&fmt=gif)