Analytics and brochures

Overview of Tax events for December 2019

Russia has joined the new OECD procedure that allows potential disputes with multinational corporations to be settled at the pre-trial stage (International Compliance Assurance Programme (ICAP) 2.0).

The Plenum of the Russian Supreme Court has adopted a resolution on liability for tax offences

Law firm Pepeliaev Group advises that, the Plenum of the Russian Supreme Court (the “Plenum”) has adopted Resolution No. 48 dated 26 November 2019 clarifying certain issues concerning criminal liability imposed under articles 198, 199, 199.1 and 199.2 of the Russian Criminal Code (the “Criminal Code”).

The Plenum of the Russian Supreme Court has adopted a resolution explaining issues of interaction between state and arbitral jurisprudence

Pepeliaev Group advises that on 10 December 2019 the Russian Supreme Court adopted its Plenum’s Resolution No. 53 “On Russian courts performing assistance and control functions with respect to arbitral proceedings and international commercial arbitration”.

The State Duma has adopted a law on new fines in the area of personal data Pepeliaev Group advises that on 21 November 2019 the Russian State Duma has adopted in the third reading a law establishing enormous fines for violating requirements for localising personal data in Russia.

Overview of Tax events for November 2019

The Russian Finance Ministry and the Federal Tax Service consider as insufficiently effective their cooperation with experts from the World Bank with respect to the tax section of the Doing Business (DB) ranking. 

The Russian Ministry of Labour has issued recommendations for assessing and preventing corruption in companies Law firm Pepeliaev Group advises that the Ministry of Labour and Social Development of the Russian Federation (the “Ministry of Labour”) has published a number of documents dedicated to preventing corruption in companies.

Overview of Tax events for October 2019 Russia was ranked 28th in 'Doing Business', the World Bank's updated ratings, moving up by three positions in comparison with last year. Russian Government officials do not agree with such a low assessment.

A promissory note is not always equal to a loan relationship Law firm Pepeliaev Group advises that the Russian Supreme Court (the “Supreme Court”) has issued a ruling[1] to establish the legal nature of the redemption of a promissory note.

Companies must arrange for foreign employees to be vaccinated against measles by 31 December 2019 Pepeliaev Group advises of the obligation imposed on employers hiring foreign nationals (including highly-qualified specialists) to ensure that such employees are vaccinated against measles.

A pledge status of a competent body’s claims in bankruptcy cases: risks and consequences Law firm Pepeliaev Group advises of the entry into force of amendments to the Russian Tax Code to introduce a pledge status of outstanding obligations to the state budget, starting from 1 April 2020 .
Amendments to the Russian Tax Code have been introduced by Federal Law No. 325-FZ dated 29 September 2019 “On amending Part I and Part II of the Tax Code of the Russian Federation”, including to article 73 of the Code. The provision has been supplemented with clause 2.1 concerning the creation of a pledge with respect to the obligations to the state budget by virtue of a law. Please find below the principal amendments and consequences of the new provisions being implemented as applied to the interests of a taxpayer company and its creditors if the company goes bankrupt. 

Introducing the electronic visa regime for foreign nationals crossing the Russian border through checkpoints in St Petersburg and Leningrad region Pepeliaev Group advises that there is an opportunity to obtain an ordinary single-entry business, tourist or humanitarian visa in electronic form for foreign nationals travelling to St Petersburg and Leningrad Region.

Overview of Tax events for September 2019 The programme of the integration of Russia and Belarus implies the partial consolidation of the economic systems of both countries starting from January 2021, including transition to a unified Tax Code, setting up a “single regulator” of the energy market and unification of customs policy. The Presidents of both countries may approve the programme by 8 December. 

Registration rules for unmanned aerial vehicles with a maximum gross weight from 0.25 kg to 30 kg Pepeliaev Group advises of the entry into force of Resolution No. 658 of the Russian Government “On approving the Rules for the registration of unmanned aerial vehicles with a maximum gross weight from 0.25 kilograms to 30 kilograms imported into the Russian Federation or manufactured in the Russian Federation” dated 25 May 2019.

New forms of notifications regarding foreign employees apply from 9 September 2019 Pepeliaev Group advises of a change in the forms for employers to notify the police about entering into or terminating agreements with foreign employees, and about performing the obligation to pay salary to highly qualified specialists.

A draft law establishing new fines of up to 18 million roubles (approx. €255,000) in the sphere of personal data has passed its first reading in the State Duma Pepeliaev Group advises that a draft law establishing enormous fines for violating requirements for localising personal data in Russia was adopted in the first reading on 10 September.

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.