21.11.2008 - Before the end of November the Russian Parliament (State Duma) is likely to approve material changes to the Russian tax legislation. Among the suggested by the Government changes the most revolutionary are the decrease of the Russian corporate income tax rate from 24% to 20% and abolishment of the corporate income tax advance payment system. There were also suggestions related to VAT accounting, individual income tax exemptions and decrease of the simplified tax rate (applicable to small business) from 15% to 5%. All the suggestions are aimed to increase funds in operation by companies (especially in the crisis conditions) and become effective from 1 January 2009. VFBS will keep its Clients informed on the development and details of the tax reform.