1.4% is an expected increase of the GDP of Russia in 2017. In 2018, the economic growth will be analogous according to the International Monetary Fund (IMF). Such forecasts are contained in the July review of the World Economic Outlook.
As for the global GDP, the IMF has forecasted the growth of 3.5% for the current year, 3.6% for the forthcoming year. The growth in global trade as to goods and services is believed to be increasing to 4% in 2017 (2.3% in 2016), and its decrease to 3.9% in 2018 is expected.
According to the IMF’s previous statement, the role of the government in the economy of Russia keeps increasing.
What are the forecasts for Russia’s GDP according to the experts from Seychas.ru?
Base erosion and Profit shifting is a tax planning strategy employed by many Multinational Entities (MNE's), which have tried to evade the payment of tax in the jurisdiction in which they operate by shifting their profits to tax havens in which they have incorporated related entities, thus paying lower or no Corporation tax. This is particularly concerning as most of the developing countries in which the profits are being shifted to rely heavily on Corporation Tax income.
On 1 January 2015, the Federal Law of 24.11.2014 No 376-FZ (hereinafter Law No 376-FZ) enacted the Tax Code amendments that provided for creation of the mechanism for taxation of profit earned by controlled foreign companies (CFCs). This document contains the brief summary of the main changes.
Major provisions of Federal law No. 227-FZ dated 18 July 2011 "On introduction of amendments into certain legislative acts of the Russian Federation in connection with improvement of principles of price definition for tax purposes" came into effect on 1 January 2012, leading to substantial changes in the Russian legislation on transfer pricing.
For preselection of auditors engaged with financial sector, the Central Bank announced voluntary certification of audit companies. The Central Bank is going to learn all about company's activities and each employee since 2014. Market participants consider the Central Bank's proposal somewhat premature. However, volunteers have already emerged.
Russian banks have a very high rate of overdue debts. It is estimated to be 10%. However, given restructured loans, the figure might be significantly higher, namely around 20%. A significant amount of refinanced loans is the potential risk to banks, and many credit institutions ignore and persistently hide it according to experts.