01.10.2020 — More Freedom to Credit Tax Overpayment

The amendments to the Russian Tax Code simplifying crediting of excessively paid taxes against future tax payments entered into force on 1 October 2020. The amendments excluded the previous limitation of crediting tax overpayments, possible only in respect of taxes payable in the budget of the same level (federal, regional or local). The new rule also covers payment of penalties and fines.

Previously, the Russian Tax Code allowed crediting tax overpayments only against taxes payable in the budget of the same level (federal, regional, or local budget). The current amendments excluded this limitation, and since 1 October 2020 the amounts of excessively paid taxes may be credited against future payments by a taxpayer in respect of the same or other taxes, outstanding penalties and fines, without limitation.

In addition, the Russian Ministry of Finance clarified that a tax authority is entitled to take decision on crediting taxes, including in respect of taxes excessively paid before 01 October 2020 (see the Letter of the Tax Policy Department of the Russian Ministry of Finance dated 10 August 2020 No. 03-02-07/1/72100).