Constraints for Сarry Forward of Losses in Russia in 2017–2020

Elisey Leonov – Research fellow of Budget Policy Department of the Gaidar Institute; Junior Research fellow of Laboratory for Studies of Tax Policy, Institute for Applied Economic Research, Russian Presidential Academy of National Economy and Public Administration. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In the budget sphere 2017 demonstrated significant growth of profit tax receipts up to 3.6% of GDP while during the previous four years it did not exceed 3.2% of GDP. At the same time profit of profit-making organizations fell by 10% (taking into account non-operating income by 14.5%). Experts explain such income growth first of all owing to the fact that from 1 January 2017 the norm of carry forward of losses by not more than 50% of the volume of taxable income was introduced.

The article is dedicated to the analysis of whether there was the effect of introduction of this norm on the budget revenues and what additional effects this can create for the Russian economy.

Key words: shortfall in budget revenue, tax offset of losses, losses reducing tax base.