Overview of tax events for July 2021

Regulatory developments

The Russian President has signed a law with multiple amendments to the Russian Tax Code.

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From 1 July:

• a list of grounds for a tax return or a calculation to be recognised as not having been submitted will apply;
• an updated VAT return form will apply;
• a list of potential participants in tax monitoring will expand owing to a decrease in criteria of switching to it;
• a qualified certificate for a verification key for electronic digital signature will be available through the Russian Federal Tax Service’s Certification Centre (free of charge).

The Chairman of the Russian Government has signed a resolution to launch the traceability system.

The simplified procedure for labelling medicines has been extended until February 2022.

The Russian Government has supplemented the criteria for establishing Special Economic Zones (SEZ).

The Russian Ministry of Economic Development has submitted to the Russian Government a draft law to reform SEZ.

In 2021 a code of investment rules is to be prepared which will contain a description of specific step-by-step algorithms for solving typical problems of an investor.

Further adjustment of the tax system was on the agenda at the 2021 St Petersburg International Economic Forum.

Practice

The Russian Federal Tax Service has summarised the implementation in the first half of the year of the project relating to the taxation of companies’ property without tax returns.

A new section “How the tax service sees me” has been added to the “Bank account locking risk” tab in the Taxpayer Personal Profiles for legal entities and individual entrepreneurs.

The Russian Federal Tax Service has updated the portal “The new taxation procedure for the property of companies”.

During the first half of 2021 the Russian Federal Tax Service carried out 140% more audits of controlled transactions than during the entire last year.

Taxpayers now can file with the Russian Federal Tax Service documents concerning the entry into pricing agreements in electronic form.

Between 1 August 2021 and 31 August 2022 Russia will be conducting an experiment with labelling skin sanitizers and disinfectants.

The Russian Ministry of Industry and Trade has proposed that between 1 February 2022 and 28 February 2023 an experiment with labelling electronic cigarettes and nicotine containing liquids should be conducted.