Overview of tax events for November 2017

REGULATORY DEVELOPMENTS

The Russian President has signed a number of tax laws, including laws which:

• increase the deadline for refunding overcharged tax from one month to three years (No. 322-FZ);
• give taxpayers an opportunity to obtain extensions for paying the tax amounts charged by the tax authority further to its inspections (No. 323-FZ);
• aim to ensure that tax information will be collected and shared with competent authorities of other countries (No. 340-FZ);

Further reading:

(nalog.ru, 22.11.2017)

By order of the Russian Federal Tax Service, updates have been made to the list of states and territories which do not ensure that information is exchanged with Russia for tax purposes.

• introduce a tax free regime for citizens of states which are not members of the Eurasian Economic Union when goods purchased in Russia are exported (No. 341-FZ);

For your information:

(ria.ru, 01.12.2017)

The Russian Ministry of Industry and Trade has published the addresses of Russian shops where foreign citizens (except for citizens of countries which are members of the Customs Union) can receive special tax free receipts.

(www.kommersant.ru, 30.11.2017)

A domestic operator of the tax free system is being created in Russia, Sky Finservice LLC, which operates under the Hi Sky brand.

• extend the tariffs for insurance contributions effective in 2017-2018 for the main category of taxpayers unamended through to the year 2020 (No. 361-FZ);
• “on transferring to the constituent entities of the Russian Federation the right to establish the tax rate for movable property up to a maximum threshold of 1.1%. The amendments also apply to investment tax deductions (No. 335-FZ).

PRACTICE

The Russian Ministry of Finance has issued two letters simultaneously dedicated to cryptocurrencies.

In the first one, it acknowledges that it remains unclear how to treat such currencies: as a means of payment, property or security. In the second letter, the Ministry states that, despite the unclear status of cryptocurrencies, any income from transactions involving them is subject to personal income tax.

www.vedomosti.ru, 14.11.2017

The Russian Federal Tax Service:

• has started developing the form and format for a request to be sent to legal entities for them to provide information regarding their beneficial owners.

www.klerk.ru, 22.11.2017

• has sent to lower tax authorities new recommendations regarding the application of article 54.1 of the Russian Tax Code.

Letter No. ED-4-9/22123@ dated 31 October 2017

•  has developed a procedure for confirming the status of a Russian tax resident.

nalog.ru, 30.11.2017

Further reading:

(iz.ru, 29.11.2017)

The Russian Government intends to simplify the procedure for highly qualified specialists to obtain Russian tax residency.

• has published an Overview of legal positions of the Russian Constitutional Court and the Supreme Court. This Overview informs the local inspectorates about the recent resolution of the Russian Supreme Court regarding the good faith of the actions of a taxpayer whose taxes were not received by the budget owing to the financial difficulties of the bank.

rbc.ru, 31.10.2017

Fish processors have joined the tax charter for the turnover of agricultural produce. They intend to refuse the services of intermediary companies and buy raw materials directly from fisheries.

iz.ru, 30.11.2017

The Russian Constitutional Court has prohibited the Ministry of Finance from avoiding written explanations in relation to tax matters, even if special expertise is needed for an answer. The Court also issued a reminder that a resolution of a higher court that worsens the position of a taxpayer has no retroactive effect.

kommersant.ru, 29.11.2017

The Judicial Board for Economic Disputes of the Russian Supreme Court:

• has resolved, in the case of Aquamarin LLC, that higher tax authorities may under a special procedure reverse the decisions of lower authorities issued for the taxpayers’ benefit within three years after the end of the audited tax period.

www.rbc.ru, 03.11.2017

• has satisfied the claims of New Holland LLC and Nikolskiye Ryady JSC, and permitted companies involved in the refurbishment of monuments to obtain VAT deductions, although this work is exempt from taxation.

www.kommersant.ru, 22.11.2017