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Wednesday, 3 February 2016

Moscow may hit Google, Apple and Facebook with a 'technology tax' Putin advisor warns

According to dailymail, Silicon Valley internet giants Google, Apple and Facebook may be hit by a significant Russian tax bill as the country moves to enable 'more equal working conditions' to level the playing field for domestic IT companies.
German Klimenko told Russian radio that foreign internet companies need to be equal 'before the law' and pay VAT, which amounts to 18 per cent.
'There should no doubt be equality of Russian and foreign companies before the law,' Klimenko told Russian News Service radio.
'I'd like to know how much Google earns on the territory of Russia and to add 18 percent to it,' he said.
'I'm really interested in the figure. When we learn it, then we'll make conclusions.'
Global video streaming websites like Netflix have the upperhand on their Russian rivals as they have access to more content, as well as the tax-break.
Russian President Vladimir Putin signed an executive order to toughen up the rules for foreign internet companies last week.
And his advisor Klimenko has warned that social media websites would be blocked 'sooner or later' if they did not comply with legislation passed in August requiring companies storing Russian data to keep it on Russian soil.
The suggestion of a 'value-added tax' has previously been floated by lawmakers who have also suggested a 'sales tax' for goods bought online from foreign companies.

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