Responsible tax policy
As a systemically important company, a large employer and a major taxpayer, Russian Railways is a key contributor to Russia’s social and economic progress. We are aware of our responsibility towards the government and society, and are committed to fulfilling our tax liabilities in good faith. Russian Railways pays all applicable taxes, insurance contributions, levies and charges required by the Russian laws, including VAT, corporate income, property, land, and transportation taxes, insurance fees, MET and others.
The Company adopted the Declaration on Tax Strategy Objectives and Principles (tax strategy)Approved by Russian Railways’ Order No. 1309/r dated 15 June 2021., which is in line with the Russian Railways Group’s values, mission, strategic priorities, and growth targets.
In its tax strategy, the Company relies on the following principles:
Taxpayer’s good faith.
The Company complies with all tax laws and pays all applicable taxes and levies on time and in full, as well as files tax returns and other documents in a timely manner.
We disclose tax information in accordance with the laws of our countries of operation and international treaties.
Higher tax transparency.
The Company takes measures to enhance tax transparency, including through tax monitoring to ensure accurate calculation and timely payment of taxes, levies and insurance fees.
Tax risk management.
The Company uses a comprehensive system to identify and manage tax risks.
Consistency of tax accounting methodology.
Russian Railways seeks to adopt consistent approaches to taxation to ensure the consistency of tax accounting and fair presentation of taxes in its reporting. The Company mitigates tax risks among other things by requesting clarifications from relevant government agencies and reasoned opinions of tax authorities as part of tax monitoring.
Tax burden planning.
The Company has a tax planning system in place to have tax authorities informed of planned tax accruals and to ensure the complete and timely payment of taxes and levies. The Company collaborates with the Russian government agencies to determine a fair tax burden on the rail transportation industry.
Due diligence and mitigating risks of unjustified tax benefits.
Russian Railways exerts every effort to stay within the limits as regards the right to determine tax base and calculate taxes when entering into transactions with its counterparties. The Company’s internal controls and procedures serve to mitigate tax risks.
Tax function automation and digitalisation.
Russian Railways seeks to improve its tax management processes by means of continuous automation and digitalisation.