Analytics and brochures

May foreign holding companies that serve the interests of one group of persons not be beneficial owners of income? Law firm Pepeliaev Group advises that the court has used in practice the conclusions of Letter No. SA-4-9/8285 of the Russian Federal Tax Service dated 28 April 2018 regarding the application of international tax treaties by foreign holding companies that serve the interests of a single group of persons.

The status of clinical guidelines is changing Pepeliaev Group advises that the President of the Russian Federation has signed Federal Law No. 489-FZ dated 25 December 2018, which significantly changes the status of clinical guidelines.

The form of an application for a comprehensive environmental permit has been approved along with the form of a comprehensive environmental permit Pepeliaev Group advises that, starting from 1 January 2019, the form of the application is introduced for obtaining a comprehensive environmental permit along with the form of the comprehensive environmental permit.

Overview of Tax Events for December 2018

The Supreme Court has summarised court practice on financial liability

Law firm Pepeliaev Group advises that, on 5 December 2018 the Supreme Court issued an overview of the practice of courts which considered cases relating to an employee’s financial liability (the “Overview”).

Upcoming changes in the legal regulation of greenhouse gas emissions Law firm Pepeliaev Group advises of the public consultation concerning the draft law proposed by the Russian Government to introduce legal regulation of activity involving the emission of pollutants classified as greenhouse gases.

Upcoming changes in the legal regulation of an environmental expert review Pepeliaev Group advises that a public consultation is currently being held with regard to the draft law prepared by the Russian Ministry for the Protection of the Environment and Natural Resources. The draft law provides for a fundamentally new definition of the item that is subject to a state environmental expert review as well as certain other changes in the legal regulation of a state environmental expert review. 

Transformation of environmental charges

Pepeliaev Group advises that a draft law has been made available for public discussion. This draft law provides for the charge for a negative environmental impact to be replaced with an environmental tax, and for environmental and recycling fees to be replaced with a recycling fee, with the new payments being introduced into the Russian Tax Code.

Сlarifying the rules for calculating taxes on income from capital and other amendments to the Tax Code to come into force from 2019 Pepeliaev Group advises that amendments have been made to the Russian Tax Code that clarify the rules for calculating taxes on income from capital, and that other tax changes have been made.

Overview of Tax Events for November 2018 The law on the reform of procedural legislation has been adopted (it comes into force from 1 January 2019). Only lawyers can be representatives under a power of attorney in commercial proceedings.

The reform of procedural legislation is underway

Pepeliaev Group advises that, on 20 November 2018, the State Duma passed a law amending the Civil Procedure Code, Commercial (‘Arbitration’) Procedure Code, the Administrative Procedure Code and other legislative acts. The Law was initiated by the Supreme Court.

Migration registration of foreign nationals: criminal liability has been extended

On 12 November 2018, Federal Law No. 420-FZ “On amending article 322.3 of the Criminal Code of the Russian Federation (the “Law”) was adopted. The amendments extend the definition of a sham registration of foreign nationals or stateless persons at the place of their stay in Russia not only to residential premises, but also to companies’ offices.

Overview of Tax Events for October 2018 The Finance Ministry has published on its website the “Principal areas of focus for the public finances, tax, customs and tariffs policy in 2019-2021”.

A new Circular Letter of the Central Bank of Cyprus on shell companies

Legal firm Pepeliaev Group advises that the Central Bank of Cyprus has issued an additional circular letter regarding shell companies, containing more favourable explanations as to when a company is classified as a shell company.

A tax agent may recover an amount of tax it paid from its own property on behalf of a foreign person by using the institution of unjust enrichment The Commercial Court, in the case of the Organising Committee of the 2014 Olympic and Paralympic Winter Games in Sochi, has recognised as lawful the application of the civil law mechanism for recovering from a foreign person an amount of unjust enrichment in the form of tax that a tax agent has paid on behalf of the foreign person, together with interest for using the other party’s money.

The Russian Supreme Court on a tax benefit for movable property

Despite the literal wording of article 381(25) of the Russian Tax Code, movable property that was acquired from a related party can be exempted from taxation in certain cases, according to the Russian Supreme Court.

The Russian Supreme Court on withholding tax at source when services of a foreign company are paid for According to the Russian Supreme Court payments under cross-border agreements for services (work) are treated as passive income if no operations have actually been performed.  

Overview of Tax Events for September 2018 The Russian Ministry of Economic Development has prepared draft amendments to the Russian Civil Code which are to determine what property is treated as movable for tax purposes.

The status of an international company has been enshrined in Russian law

Pepeliaev Group advises that Federal Law “On international companies” (the “Law”) came into full force on 3 August 2018. The Law establishes a regime for foreign companies allowing them to change their personal law and obtain the status of international companies.

Pepeliaev Group has contributed to Taxand publication: GLOBAL GUIDE TO M&A TAX