Analytics and brochures

Pepeliaev Group advises that, on 1 January 2011, Federal Law No. 411-FZ “On amending the Code of Administrative Offences of the Russian Federation” dated 28 December 2011actually came into force. The Law contains amendments to the Code of Administrative Offences (the “CoAO”) establishing a fine of up to 5 million roubles for a breach of the compulsory requirements of Federal Law No. 381-FZ “On the fundamentals of state regulation of trade in the Russian Federation” dated 28 December 2009.

Pepeliaev Group notes that Federal Law No. 152-FZ “On personal data” dated 27 July 2006 has been amended so as to extend to 1 July 2011 the deadline for making personal data information systems comply with the Law’s requirements.

Pepeliaev Group notes that Federal Law No. 308-FZ dated 27 November 2010 has amended the chapter of the Russian Tax Code dealing with property tax and land tax. In particular, these amendments make property tax and land tax applicable to the property and land plots of unit investment trusts. The law comes into force on 1 January 2011.

On 27 November 2010, Federal Law No. 309-FZ “On amending chapter 21 of the second part of the Russian Tax Code” was adopted. It significantly amends and adds to the series of provisions of the Tax Code governing the application of zero rate VAT to work and services connected with the export of goods (articles 153, 164 165 and 167 of the Tax Code). The new law will come into force on 1 January 2011.

Pepeliaev Group advises that on 16 November 2010 the Presidium of the Russian Supreme Arbitration Court will consider on what date property tax should be levied on a constructed real estate asset.

7 October 2010 saw the signing of a Protocol on Amendments to the 1998 Double Taxation Treaty between the Russian Federation and the Republic of Cyprus. The Treaty was significantly amended by the Protocol. Many of the Protocol’s provisions clearly aim to combat aggressive tax planning. At the same time, a number of the amendments make Cyprus a more attractive jurisdiction for Russian companies investing abroad.