Analytics and brochures

Overview of tax events for September 2020 In the issue: A number of Russian companies will be able to invoke a tax benefit when they transfer dividends to their shareholders in Cyprus.

The government has clarified specific aspects of how certain permit regimes should be applied that were introduced in connection with the spread of COVID-19
Pepeliaev Group advises that Resolution No. 1580 of the Russian Government dated 1 October 2020 (“Resolution No. 1580”) , which establishes specific aspects of how permit regimes should be applied in the areas of industrial safety, the electric power industry and heat supply, came into force on 3 October 2020.

The Russian Federal Service for State Registration, the Cadastre and Cartography (known as Rosreestr) has approved new lists of documents confirming an applicant’s right to acquire a land plot without a bidding procedure being held Pepeliaev Group advises that on 2 October 2020 Rosreestr’s Order No. P/0321 “On approving the list of documents confirming the applicant’s right to acquire a land plot without a competitive bidding procedure” dated 2 September 2020 (the “Order”) was published on the official legal Internet portal.

A protocol has been prepared on amending the DTT with Luxembourg Pepeliaev Group advises that the Russian Government has prepared a draft of the DTT with Luxembourg that proposes changes in the taxation of dividend and interest income.

The Supreme Court’s position regarding the classification of income when double tax treaties are applied Pepeliaev Group advises that the Russian Supreme Court (the “Supreme Court”) has formed a legal position regarding the income of foreign entities being subject to Russian withholding tax.

The procedure for holding a mutual agreement procedure on DTT issues has been approved Pepeliaev Group advises that order No. 102n of the Russian Ministry of Finance dated 11 June 2020 approved the Procedure for a mutual agreement procedure application to be filed and reviewed in accordance with the provisions of a DTT .  

Moratorium for bankruptcies extended until 2021

New approaches of the Russian Supreme Court to intra-group financing

Pepeliaev Group advises on a ‘substantive’ change in the approaches to the use of thin capitalisation rules.

The Ministry of Labour has issued recommendations for identifying and mitigating corruption risks in procurement Pepeliaev Group advises that the Russian Ministry of Labour and Social Protection has published, on its information portal gossluzhba.gov.ru, Guidelines for the identification and mitigation of corruption risks in the procurement of goods, work, or services to provide for state or municipal needs.

The forms of and the requirements for the documents to be filed for the state registration have changed

Pepeliaev Group advises that Order No. ED-7-14/617@ of the Russian Federal Tax Service (the “Federal Tax Service”) dated 31 August 2020 has approved new forms of and requirements for drawing up the documents to be filed with the registration authority for the state registration of legal entities, individual entrepreneurs and farm businesses.  

Registration of legal entities and individual entrepreneurs will be simplified

Pepeliaev Group advises that the Russian Government has approved a draft law to simplify the state registration procedure for legal entities and individual entrepreneurs.

Protocols with Cyprus and Malta have been agreed

Pepeliaev Group advises of the amendments to the double taxation treaties with Cyprus and Malta and the increase of tax rates for dividends and interest.  

The Russian Federal Tax service has published new recommended forms and formats of documents used when a company enters into and is subject to tax monitoring

Pepeliaev Group advises that, the Federal Tax Service in its Letter No. BV-4-23/13939@ dated 31 August 2020 forwarded new recommended forms and formats for submitting the documents used when a company enters into and is subject to the tax monitoring.

A procedure is suggested to be set for conducting general meetings of shareholders online

Pepeliaev Group advises that the Ministry of Economic Development has suggested that companies should be permitted to conduct general meetings of shareholders remotely, using information and communications technologies.

A procedure is suggested to be set for conducting general meetings of shareholders online

Pepeliaev Group advises that the Ministry of Economic Development has suggested that companies should be permitted to conduct general meetings of shareholders remotely, using information and communications technologies.

Overview of tax events for August 2020 In the issue: The Republic of Cyprus and Malta has agreed with Russia on amendments to the double taxation agreements; the special conditions for being recognised as a tax resident in 2020, etc.

Amendments are being prepared to the legal treatment of lands within the borders of specially protected natural territories Pepeliaev Group advises that the State Duma of the Federal Assembly of the Russian Federation is reviewing in the first reading two draft laws that eliminate the restrictions on transactions with land plots within the borders of specially protected natural territories (SPNT) and vest the Russian Government with powers to change the borders of national parks.

The Russian Federal Tax Service about the adequacy of expenses on the prevention of the coronavirus infection

Reinforcement in the Prosecutor’s supervision over whether the procurement laws are observed Pepeliaev Group advises that measures have been taken to reinforce the prosecutor’s supervision over whether the procurement laws are observed.

Amendments are being prepared to the accreditation procedure for branches and representative offices of foreign legal entities Pepeliaev Group advises that a draft law has been put before the State Duma that is aimed at improving the accreditation procedure for branches and representative offices of foreign companies.