Analytics and brochures

30 December 2010 saw the publication of Federal Law No. 395-FZ dated 28 December 2010 “On amending the second part of the Tax Code of the Russian Federation and specific laws of the Russian Federation”. These amendments touch on different tax issues, among the most interesting of which are a company being able not to pay profit tax (or individual being able not to pay income tax) on transactions involving securities or participation interests the taxpayer has owned in Russian companies for a protracted time; taxpayers having wider possibilities in terms of determining the service life of non-tangible assets; and eliminating the uncertainty in converting advance payments received in foreign currency when calculating profit tax.

Federal Law No. 409-FZ dated 28 December 2010 has brought in a new ground for exemption from profits tax in an amicable increase of net assets. This law mainly deals with the regulation of relations between companies and their shareholders relating to profit distributed but not claimed (i.e. unclaimed dividends). However, some of the amendments brought in by the law go beyond the scope of this issue.

Pepeliaev Group advises that, on 1 January 2011, Federal Law No. 411-FZ “On amending the Code of Administrative Offences of the Russian Federation” dated 28 December 2011actually came into force. The Law contains amendments to the Code of Administrative Offences (the “CoAO”) establishing a fine of up to 5 million roubles for a breach of the compulsory requirements of Federal Law No. 381-FZ “On the fundamentals of state regulation of trade in the Russian Federation” dated 28 December 2009.

Pepeliaev Group notes that Federal Law No. 152-FZ “On personal data” dated 27 July 2006 has been amended so as to extend to 1 July 2011 the deadline for making personal data information systems comply with the Law’s requirements.

Pepeliaev Group notes that Federal Law No. 308-FZ dated 27 November 2010 has amended the chapter of the Russian Tax Code dealing with property tax and land tax. In particular, these amendments make property tax and land tax applicable to the property and land plots of unit investment trusts. The law comes into force on 1 January 2011.

On 27 November 2010, Federal Law No. 309-FZ “On amending chapter 21 of the second part of the Russian Tax Code” was adopted. It significantly amends and adds to the series of provisions of the Tax Code governing the application of zero rate VAT to work and services connected with the export of goods (articles 153, 164 165 and 167 of the Tax Code). The new law will come into force on 1 January 2011.