Analytics and brochures

Overview of Tax events for August 2019
The Russian Ministry of Finance is proposing to change the use of tax benefits in cross-border transactions in the draft of ‘Principle lines of budget, tax, and customs and tariffs policy for 2020 - 2022’.

Labelling requirements in Russia (supplements, sport nutrition and water) Rospotrebnadzor’s proposal to introduce mandatory labelling of supplements, sport nutrition and water.

The subject matter of special investment contracts, and their tax consequences, are changing Pepeliaev Group advises that the new rules for regulating special investment contracts (SPIC 2.0) have come into force. Changes aimed at improving the taxation regime with regard to taxpayers who are SPIC participants have also been made to the Russian Tax Code. 

Holding companies’ beneficial ownership of income: the updated position of the Russian Federal Tax Service

Letter No. ED-4-13/15696@ “On holding companies’ beneficial ownership of income from sources in the Russian Federation” dated 8 August 2019 was published on the official website of the Russian Federal Tax Service on 13 August 2019. This letter evidences quite a serious change of the Service’s approach to the problem, which for many years has been the subject matter of tax disputes and professional discussions. 

Overview of Tax events for July 2019

The Russian Ministry of Finance is planning to include grapes used for the production of wine in the list of excisable products in 2020. 

Receiving salary through another bank: new timeframes for employees, and employers’ liability

Pepeliaev Group advises that laws have been passed which increase the period for employees to notify employers about receiving salary through another bank and which specify administrative liability for impeding employees’ rights when the latter choose a credit institution for their salary to be transferred to.

A law on crowdfunding (retail financial services) has been passed in the third reading Pepeliaev Group advises that a federal law “On attracting investments using investment platforms and amending certain items of Russian legislation” has been adopted.

Updated regulation in the sphere of shared-equity construction of real estate Pepeliaev Group law firm advises that a number of amendments to Federal Law No. 214-FZ dated 30 December 2004 (“Law No. 214-FZ”) have come into effect regarding participation in the shared-equity construction of apartment buildings and other real estate, as have amendments to other regulatory acts.

Overview of Tax events for June 2019

The Head of the Russian Ministry of Industry and Trade has announced that the tax free system can be extended to cover all Russian regions by the end of 2019.

The law on strengthening administrative liability for environmental offences has taken effect Pepeliaev Group advises that on 17 June 2019 amendments took effect. They include changing the text and supplementing articles 8.2 and 8.4 with new provisions as well as introducing new heads of administrative offences (8.51 and 8.411) in the area of handling production and consumption waste. 

The rules of mandatory medical insurance have changed considerably Pepeliaev Group advises that the new Rules of mandatory medical insurance approved by Order No. 108n of the Russian Ministry of Health dated 28 February 2018 have come into force. 

Overview of Tax events for May 2019

The Russian Ministry of Economic Development has suggested the concept of adigital special economic zone for the IT sector featuring many benefits, including tax benefits.

The third stage of the "Offshore amnestey": the requirements for redomiciliation of foreign companies to Russia Pepeliaev Group advises that the State Duma has adopted a set of laws extending until 29 February 2020 the period of the voluntary reporting of individual types of activity and accounts in foreign banks.

The Multilateral Tax Convention has been ratified Pepeliaev Group advises that the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“MLI”) has been ratified.

Criteria have been approved that, when met, allow funds of the participants in shared-equity construction to be raised without escrow accounts being used Law firm Pepeliaev Group advises that on 1 May 2019, the Russian Government’s Resolution No. 480 dated 22 April 2019 comes into effect. Resolution No. 480 establishes criteria which, when met, allow a developer to raise funds from the participants in shared-equity construction without escrow accounts being used.

Overview of Tax Events for April 2019

An agreement on the labelling of products in the Eurasian Economic Union (the “EAEU”) has come into force. This agreement was signed a year ago by the heads of governments of the member states. The document grants the right to each member state of the EAEU to propose the implementation of the labelling of products in all five countries.

The third stage of the “Offshore amnesty” will require that foreign companies be redomiciled to Russia and funds be repatriated from foreign accounts The Russian Government has put before the State Duma draft laws prolonging the period when persons can voluntarily report certain types of assets, as well as accounts in foreign banks (the so-called “offshore amnesty”) until 29 February 2020. Yet, the application of the new (third) stage of voluntary reporting will be subject to rather stringent conditions.

A law has been adopted that prohibits the provision of hotel services in residential premises of apartment buildings from 1 October 2019 On 1 October 2019 the amendments to the Russian Housing Code will come into force. These amendments have been made pursuant to Federal Law No. 59-FZ dated 15 April 2019 , which prohibits the use of residential premises in an apartment building for the provision of hotel services.

Rules for developing technological standards are approved

Pepeliaev Group advises that on 15 April 2019 the Rules for developing technological standards relating to emissions/discharges of pollutants take effect. They are approved by the Russian Government's Resolution No. 89 dated 14 February 2019.

Overview of Tax Events for March 2019

On 15 March, a public consultation started concerning amendments to the Russian Tax Code that were drafted by the Russian Finance Ministry and are aimed at settling disputes under international transactions and many other issues.