Analytics and brochures

A law to improve Tax Monitoring Pepeliaev Group advises that the law to amend the Russian Tax Code provides for a number of measures to develop tax monitoring, such as lowering the thresholds to enter monitoring and extending the deadlines for applying to switch to monitoring; changing the procedure for information exchange between a monitored company and a tax inspectorate; a new procedure for suspending transactions in accounts and for conducting desk, field and cross-audits of a monitored company; changes in the procedure when a grounded opinion is drawn up at the initiative of the tax authority, and early termination of monitoring; and granting the participants in monitoring the right to have VAT and excise tax refunded under a declarative procedure.

Overview of tax events for December 2020 In the issue: The Finance Ministry has prepared proposals on how to expand the “exchange of secret information” between the Russian Central Bank and Federal Tax Service.

Broadening information exchange between the Bank of Russia and the Russian Federal Tax Service The Russian Ministry of Finance has prepared amendments to the Tax Code the adoption of which may result in a significant increase of the volume of information transferred to the tax authorities concerning the transactions of bank clients.

The Unified Register of SMEs that receive state support has been published for the first time The Russian Federal Tax Service together with the Ministry of Economic Development has for the first time made available to the general public the Register of small and medium-sized enterprises which have received state support measures both during the spread of the coronavirus infection and during earlier periods. 

Changes are being prepared for establishing starting (maximum) contract prices under law 223-fz Pepeliaev Group advises of the actions suggested by the state that are aimed at improving the mechanism of determining the starting (maximum) price of a contract (SMPC) in procurement by state-owned companies.

The new registration procedure for declarations of conformity Pepeliaev Group advises that, on 1 January 2021, the new registration procedure for declarations of conformity comes into force. 

The option has become available on the Gosuslugi portal to submit documents to the federal bailiff service electronically Pepeliaev Group advises of the launch of a new service that enables remote interaction with the Federal Court Bailiff Service (“FCBS”) and its structural subdivisions.

Anti-virus state aid In the tough conditions of the epidemic, governments are trying to mitigate the consequences of the crisis. For this purpose they are developing horizontal schemes of state support for the business sector, which has been seriously damaged by a sharp drop in economic activity, as well as a decrease in consumer demand and the level of income. Primarily this applies to such areas as tourism, air carriage, the hotel business, catering, retail, domestic services, sports, culture and entertainment. Different countries and supranational unions are seeking a balance between helping companies, on the one hand, and, on the other hand, not only maintaining competition but also ensuring its subsequent development.

Amendments have been proposed that aim to improve corporate procedures in JSCs and LLCs, including by extending to 2021 the temporary regulations adopted during the Covid-19 pandemic Pepeliaev Group advises that a draft law has been put before the State Duma that provides for amendments to corporate legislation, including to establish procedures for the holding of purely online meetings in JSCs (joint-stock companies) and LLCs (limited liability companies) and to extend to 2021 the effect of the set of temporary anti-crisis measures adopted in 2020 during the coronavirus pandemic.

Overview of tax events for November 2020 In the issue: The Russian President has signed a law amending the Russian Tax Code. It covers a variety of rules, from the conditions for filing tax returns to the taxation of dividends.

The timeframe is expiring for accepting applications of taxpayers from ‘affected’ industries regarding the deferral (instalment plan) of tax payments 30 November 2020 is the last day when the applications for granting a deferral (instalment plan) of tax payments is granted to entrepreneurs from industries most affected by Covid-19. At the same time, applications may be filed for any payments that become due in 2020 (including in December).

The Ministry of Economic Development has published a summary of best practices to prevent the spread of COVID Pepeliaev Group advises that the Ministry of Economic Development, together with business associations, has issued a summary of best practices of preventive measures aimed at stopping the spread of the coronavirus, “Business against COVID”.

The Constitutional Court has explained the conditions for collecting corporate property tax based on cadastral value Pepeliaev Group advises that the Russian Constitutional Court has adopted Resolution No. 46-P dated 12 November 2020. This Resolution specifies in what cases a real estate facility can be treated as a shopping mall with the tax base calculated based on the cadastral value.

Less than two weeks before the compiling of the Register of SMEs that receive state support is complete The Russian Federal Tax Service (the "Service") has issued a reminder that 5 December is the final deadline for the submission of information by state and local authorities, the corporation responsible for the development of small- or medium-sized entrepreneurship and other organisations that provide support to SMEs.

Extension of the deferral for the payment of taxes and contributions granted to SMEs from ‘affected’ industries

The new rules for forming the register of SMEs will help entrepreneurs On 7 November, Federal Law No. 349-FZ dated 27 October 2020 came into force, which amended the legislation on developing SMEs.

Amendments to the Russian Tax Code to raise investment attractiveness of Russian companies Pepeliaev Group advises that Federal Law No. 368-FZ dated 9 November 2020 (the “Law”) has come into force which provides for a possibility to deduct a monetary contribution to a company’s property when a member withdraws from company, the company is liquidated or its membership interests/shares are sold. The Law has also introduced targeted amendments as to how an investment tax deduction should be applied.

On 1 january 2021 a new procedure comes into force for conducting a state environmental expert review Pepeliaev Group advises that Resolution No. 1796 of the Russian Government “On approving the Regulations on the conducting of a state environmental expert review” dated 7 November 2020 (the "Resolution") that will come into force on 1 January 2021 was published on the official legal information portal on 11 November 2020.

The Russian Ministry of Economic Development is preparing amendments with regard to the shareholders who have not exercised their rights for a long time

The Federal Tax Service has published draft electronic forms and the formats of documents for conducting tax monitoring Pepeliaev Group advises that a draft Order of the Russian Federal Tax Service has been posted on the federal portal of draft regulations approving forms, and formats of documents, used for tax monitoring, as well as requirements for them.