The Russian parliament has announced the adoption of a series of measures to help mitigate the effect of sanctions. Some of the highlighted measures include:

• An income tax exemption (0% tax rate) for accredited IT companies for 2022 to 2024;
• A VAT zero-rate for five years for hospitality businesses, including hotel owners and investors who build, rent, and manage tourist facilities;
• An individual income tax exemption on interest received from bank deposits exceeding RUB 1 million for 2021 and 2022;
• An increase in the threshold for the additional transport tax on high-value cars from RUB 3 million to RUB 10 million;
• Authorization for the government to suspend, cancel, or postpone tax control measures and to extend deadlines for the payment of taxes, fees, and insurance contributions from 1 January to 31 December 2022; and
• The suspension of increased penalties for late payment where the delay exceeds 30 days.

In addition to the above, Russia's Federal Tax Service (FTS) has issued a letter dated 5 March 2022 regarding transfer pricing controls. The letter notes that because of the sanctions imposed, taxpayers may need to sell their products for export at a discount, leading to a loss on the transaction. In this regard, the FTS will consider these circumstances and their impact on pricing when conducting transfer pricing controls and when considering applications for advance pricing agreements.