Bid Book » Book1 » Finance » Taxes
Taxation In Russia
The Tax Code of the Russian Federation provides for seven federal taxes, four special tax treatments and three regional taxes. Of the above, the following types of taxes will apply in connection with the organisation and staging of the Olympic Games in Moscow:
- Value added tax
- Individual income tax
- Integrated social tax
- Corporate income tax
- Vehicle tax
- Corporate property tax
Legal Form And Tax Status Of The Moscow OCOG
The Moscow OCOG will be established as a non-for-profit institution enjoying the status of an autonomous legal entity. The OCOG will be duly empowered to hold property at its own disposal, enter into contractual relations and incur liabilities (see Theme 3, «Legal Aspects»).
The Moscow OCOG’s tax status will be determined both by general provisions applied to corporate taxation and special regulations designed for non-for-profit institutions. Moreover, subject to the legislative bodies’ approval, the Moscow OCOG will be granted exclusive tax allowances and exemptions.
Exclusive Tax Regime
The Moscow OCOG, as it has already been noted, may be granted an exclusive tax status envisaging full or partial tax exemptions. Furthermore, substantial tax allowances are anticipated to be extended to the IOC, sponsors and participants of the Games.
The preliminary taxation scheme to be operative in connection with the organisation and staging of the Games provides for the following fundamentals:
- The monies paid to the Moscow OCOG and the IOC by third parties (either Russian or foreign) who have bought Television Broadcasting and Sponsorship rights, as well as the related settlements between the OCOG and the IOC, will be tax exempt in Russia;
- Subject to their consumption or subsequent export, any sports equipment or other goods specially imported for the Games by the NOC delegations will be tax and duty exempt in Russia;
- Subject to their direct association with the Games, any sums to be paid to athletes, judges and referees, IOC/IF members and officials will be individual income tax exempt in Russia;
- Income of other persons, enjoying a temporary stay in the Russian Federation, received as a direct result of performing their professional duties for the Games, will be exempt from any tax in Russia;
- When appropriate, the respective Conventions to avoid double taxation in force for Russia will be applied to the settlements between the Moscow OCOG and its foreign contractors.
The Moscow 2012 Bid Committee undertakes to make every effort to finalise and detail the taxation scheme concerned. All the necessary procedures and formalities will be completed within the shortest possible time.
Special Tax Treatment
Any sums of money paid by the Moscow OCOG to the IOC (royalties, etc.), will be tax exempt in Russia.