Overview of tax events for December 2016
REGULATORY DEVELOPMENTS
The Russian Government has approved Russia’s joining the international treaty on automatic exchange of country reports. The signing date will be known after consultations with the OECD (Organisation for Economic Co-operation and Development), it is highly likely to happen at the beginning of 2017.
www.vedomosti.ru, 13 December 2016
A law has come into effect allowing the tax authorities to engage owners of companies and beneficiaries to settle debt. There is an interview on this topic with S.A. Arakelov, the Deputy Head of the Russian Federal Tax Service
rg.ru, 13 December 2016
In 2019, the rates of insurance contributions will remain at the level of 2015-2017. Contributions to the Pension Fund will be 22%, to the Social Security Fund will be 2.9%, and to the Mandatory Medical Insurance Fund will be 5.1%. For salaries exceeding RUB 796,000 per month, the employer is obliged to pay additional 10% to the Pension Fund.
www.consultant.ru, 20 December 2016
The Russian President has instructed the Government together with other state authorities and business associations to provide proposals on how to optimise tax benefits. The deadline for carrying out the instruction is 1 June 2017.
The President also instructed that proposals be provided regarding the key parameters of the tax system for 2019 and subsequent years. The deadline for carrying out the instruction is 1 December 2017.
kremlin.ru, 6 December 2016
For information:
(rg.ru, 16 December 2016) The State Duma has adopted the Legislative Drafting Plan which follows from the Address of the Russian President to the Federal Assembly. The main thing is that a considerable amount of work is anticipated in implementing the Address with regard to the key parameters of the tax system for 2019 and subsequent years.
(www.kommersant.ru, 20 December 2016)
The main task the reform that is being prepared is to redistribute the tax burden: lowering the tax burden for good faith taxpayers by bringing out of the shadow those who evade taxes, said Anon Siluanov, the Minister of Finance of the Russian Federation. In addition it is possible that taxes on labour (insurance contributions), which in Russia are “very high”, will be decreased by increasing taxation for consuming luxury and “harmful products”.
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The inter-departmental working group has held a session in the State Duma to assess the risks of the circulation of cryptocurrency (virtual currency). The main subjects of the event were the legal nature of cryptocurrency, the strategy for circulating it, the status and identification of persons involved in such circulation, and different aspects of customs and tax regulation.
www.duma.gov.ru, 20 December 2016
PRACTICES
The Russian Federal Tax Service is rated in the top ten of the most open authorities. 38 ministries and authorities in total were rated.
The rating was based on evaluations given by four reference groups (the public, service providers, representatives of the business community, and experts): awareness (media coverage, availability, clarity and trust in the information) of activity of a federal executive body (FEB); interaction with reference groups (the FEB with the Public Council and the general public), and based on an evaluation of the FEB’s activity in general.
www.nalog.ru, 6 December 2016
The Russian Minister of Finance has approved the Plan of the Activity of the Russian Federal Tax Service for 2017. The Plan contains a number of measures that facilitate the implementation of new tasks and functions that the Russian President and the Government have set for the tax authorities
www.nalog.ru, 14 December 2016
In 2017 producers and importers of goods will for the first time pay an environmental charge for the disposal of packaging and goods that have lost their consumer properties. It is proposed that the collected funds will be spent on developing regional programmes in waste treatment which regions should prepare and start implementing in 2017. But in reality things are much more complicated.
www.kommersant.ru, 12 December 2016
The international operator of tax free system, Swedish Global Blue, has registered in Russia. The Company will become one of the first partners in developing a system of tax refunds for non-residents, which should start working in 2017.
www.rbc.ru, 26 December 2016