Automobile manufacturer PJSC Sollers is poised to remit roughly 150 million rubles as excess profits tax, a figure disclosed by group co-owner and chief executive Nikolai Sobolev through reports filed by Interfax. The declaration signals the company’s readiness to settle the tax obligation tied to profits that surpass the threshold set by the new regime, and Sobolev noted that the calculation and payment process has entered its final phase. Sollers stands out as the first automotive industry player to publicly reveal the planned scale of payment under this tax framework.
The tax regime itself is a response to economic and fiscal policy shifts introduced by the Russian government. President Vladimir Putin signed the law establishing the excess profits tax, which applies to both Russian-based entities and foreign firms operating through a local representative office within the Russian Federation. The rule broadens the scope of taxation to capture disproportionate earnings during periods of windfall profitability, aligning corporate obligations with macroeconomic aims set by the state.
Under the new statute, effective from January 1, 2024, large enterprises with an average profit exceeding one billion rubles in 2021 and 2022 become liable for the excess profits levy. The rate is set at 10 percent of the profit amount that exceeds the corresponding figure from the 2018-2019 period. The mechanism for determining the exact tax base rests with the taxpayers themselves, but there is an opportunity to reduce the effective rate to as low as five percent if a guaranteed payment is made within a defined window from October 1 to November 30 of the current year.
Sollers operates multiple production sites across Russia, including passenger cars and commercial vehicles manufacturing in Ulyanovsk where UAZ activities take place, in Elabuga under the Sollers Atlant and Argo brands, and in Vladivostok where the plant hosts Sollers ST6 production. The facilities are notable for their historical connection to Mazda manufacturing activities, a legacy that has influenced the geographic footprint and operational portfolio of Sollers as it navigates the implications of the new tax regime.
In earlier communications, Sollers has also provided information on the pricing framework for the new ST6 pickup model, offering clarity to customers and stakeholders about the product’s value proposition in light of evolving fiscal conditions. The company continues to articulate its strategy for balancing production, pricing, and fiscal compliance within the broader context of Russia’s industrial policy and market dynamics.