Analytics and brochures

A draft law on adopting a new control system has been put be-fore the State Duma

Pepeliaev Group advises that it is planned to introduce a national tracking system starting from 1 January 2021: a draft law to this effect has been put before the State Duma.

A law on the new requirements for preventing and liquidating spills of oil and oil products has been adopted Pepeliaev Group advises that, on 13 July 2020, Federal Law No. 207-FZ “On amending article 46 of the Federal Law ‘On environmental protection’ and certain items of Russian legislation”  was published. This Federal Law introduces from 1 January 2021 new obligations for persons engaged in activities connected with the extraction, production, storage and sale of raw hydrocarbons and products made from them.

The ‘coronavirus’ support measures have been adjusted

The Russian Government’s Resolution No. 1032 dated 11 July 2020 introduced amendments to the support measures for socially oriented non-for-profit organisations which were ‘adversely affected’ by the coronavirus restrictions.

The Government has approved the possibility to cut the tax residence period in 2020 down to 90 days It was approved today at the session of the Russian Government that individuals who stay in the Russian Federation from 90 days up to and including 182 days may recognise themselves as Russian tax residents in 2020 and, consequently, pay personal income tax at the rate of 13%, rather than the rate of 30% as established for non-residents. 

The Federal Tax Service of Russia has launched a service for paying subsidies on preventing Covid-19

 Starting 15 July, organisations and entrepreneurs from “affected” industries and also socially-oriented not-for-profit organisations will be able to receive a subsidy of RUB 15.000 and on top of that RUB 6.5 for each employee for reimbursing expenses on the prevention of coronavirus.

Amendments to legislation concerning electronic signatures Pepeliaev Group advises of amendments to legislation concerning electronic signatures which came into effect on 1 July 2020.

Overview of tax events for June 2020
The Russian Government has included in the submitted Recovery Plan for the Russian Economy measures to make currency legislation more liberal. In particular, it is planned to give up total control over foreign trade transactions and not to impose fines for the non-repatriation of proceeds in foreign currency next year.

Material changes concerning administrative liability for violations of currency legislation On 7 July the Russian State Duma adopted a law easing liability for violations of currency legislation. The law’s coming into force may make it possible not to pay the fines for previous violations or to pay such fines at a reduced rate in the event that the fines have not been recovered.  

The Ministry of Labour has issued recommendations for identifying a personal interest in procurement

Pepeliaev Group advises that the Russian Ministry of Labour and Social Protection has published Guidelines for the identification of a personal interest in procurement.

The Russian Government has approved the terms under which self-regulating organisations grant loans to their members Pepeliaev Group advises that, on 8 July 2020, the Russian Government’s Resolution (the “Resolution”) came into force establishing the rules for self-regulating organisations (also the “SROs”) to grant loans to their members.

The Russian Constitutional Court has limited recovery from individuals if no arrears can be recovered from a taxpayer

By its Resolution No. 32-P dated 2 July 2020 the Russian Constitutional Court has banned recovery from individuals under a civil law procedure (article 1064 of the Russian Civil Code) of damage caused to the state in the amount of arrears provided that the impossibility to recover such arrears in the manner established by tax legislation is not connected with the actions of the individual.

Rules have been approved for granting subsidies to SMEs and socially oriented non-commercial organisations as compensation for costs on preventing COVID-19 Pepeliaev Group advises that on 2 July 2020 the Government, in its resolution No. 976, approved the rules for granting direct free-of-charge non-recurring financial aid from the government to individual categories of small and medium-sized enterprises and socially oriented non-commercial organisations for the recipients of subsidies to get a partial compensation for the costs on taking measures in 2020 to prevent the new coronavirus infection. 

The list of affected sectors has been supplemented with water-borne and rail transportation The Government's Resolution No. 927 dated 26 June has added passenger transportation by rail (i.e. a long haul service), marine and inland water-borne transport to the list of sectors “affected” by the spread of the coronavirus infection.

Review of new regional measures for tax support of owners of commercial real estate We continue to monitor the news concerning the adoption of benefits in Russian regions with respect to property taxes for owners of real estate who are landlords. Please find below an overview table as at 29 June 2020.

The Regulation on the register of socially-oriented not-for-profit organisations has been approved

As we previously advised, Russian lawmakers continue to adopt regulations aimed at clearly defining the circle of not-for-profit and religious organisations to which property can be transferred for no fee and when relevant costs can be deducted for profit tax purposes.

An administrative fine can be halved if it is paid within 20 days Pepeliaev Group advises that Federal Law No. 187-FZ dated 23 June 2020 “On amending the Russian Code of Administrative Offences” has been adopted.

The Government has proposed introducing new quotas for the procurement of products manufactured in Russia

Pepeliaev Group advises of potential amendments to the legislation on procurement.

Denunciation of the DTT with Malta Yesterday the Russian Ministry of Finance published on the government’s portal information that the development and discussion has started with regard to a draft law to denounce the Convention between Russian Government and Government of Malta for the avoidance of double taxation from 1 January 2021. 

The President’s address of 23 June: tax measures

On 23 June the President addressed the public regarding new initiatives to amend tax legislation. Please find below the specified initiatives with our comments.

The mutual agreement procedure (MAP) for preventing and settling tax disputes