Overview of tax events for November 2022
Regulatory developments
The State Duma has adopted a set of amendments to the Russian Tax Code (see draft law No. 201629-8) which, in particular:
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have extended for 2023 the Russian Government’s powers to suspend and cancel or postpone tax control activities; shift deadlines for paying taxes/levies/insurance contributions; introduce additional grounds for a deferral/for payment by instalments; and shift deadlines for submitting reports;
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have extended until 1 January 2025 the period for reduced rates to have effect regarding profit tax payable to regional budgets which were established by the laws of constituent entities of the Russian Federation;
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have exempted from taxation income in the form of funds or other property received at no cost by mobilised individuals and persons doing military service under a contract (see the abstract).
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have increased taxes in 2023-2025 for the oil and gas sector;
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have exempted some products from the excise duty being introduced on soft drinks and have postponed the introduction of such excise duty from 1 January until 1 July 2023.
The Russian Ministry of Economic Development has proposed that tax benefits with respect to results of intellectual activity apply to Russian legal entities only (see the text).
The simplified procedure of a business's redomiciliation in a special administrative district (in Russian, abbreviated to ‘SAR’) will continue next year. The Russian Ministry of Economic Development has prepared a draft law to this effect.
A single advanced development area (in Russian, abbreviated to ‘TOR’) can be established in the Far East.
The Russian Ministry of Finance has proposed revising taxation agreements with Türkiye and the United Arab Emirates.
Practice
Key quotes from the speech of Alexey Sazanov during a meeting with foreign business at the venue of the American Chamber of Commerce in Russia.
As of today, the Russian Ministry of Finance, via the analytical system “The effectiveness of benefits” has analysed 6,000 taxpayers that apply investment tax benefits in 530 sectors of the economy. The corresponding tax expenditures exceed RUB 2 trillion.
A working meeting was held of the head of the Russian Federal Tax Service and the Russian President.
Starting from 2023, tax authorities are planning to carry out tax monitoring with regard to 448 companies. The number of participants grew by 32% over a year.
Starting from 1 November, certain new rules are being introduced for parties to trading in labelled bottled water. Information regarding the trade transactions and disposal of labelled water must be submitted to a uniform system.
For information:
The Russian Government has postponed until 2024 the introduction of mandatory labelling of jewellery made of precious stones and metals.
E-cigarettes and vaporizers will be labelled within the EAEU. The corresponding EAEU Council’s Decision No. 152 dated 23 September 2022 came into effect on 2 November.
Further reading:
In 2023 the digital labelling system will cover 24 commodity groups within the Eurasian Economic Union states and Uzbekistan.
The Russian Constitutional Court has reversed the ban which was established in tax legislation on the payment to companies of interest that was paid with respect to the recycling charge if the payments collected were subsequently recognised to be unjustified (see Resolution No. 47-PP dated 8 November 2022).