As we previously advised, Russian lawmakers continue to adopt regulations aimed at clearly defining the circle of not-for-profit and religious organisations to which property can be transferred for no fee and when relevant costs can be deducted for profit tax purposes.

Pepeliaev Group advises of potential amendments to the legislation on procurement.

On 23 June the President addressed the public regarding new initiatives to amend tax legislation. Please find below the specified initiatives with our comments.

Pepeliaev Group advises that on 20 June 2020, by its Resolution No. 894, the Russian Government amended the rules that it had previously issued with respect to subsidies being granted to small and medium-sized enterprises (SMEs) from the most affected sectors in the amount of one minimum monthly wage per employee.

We continue to monitor the news concerning the adoption of benefits in Russian regions with respect to property taxes for owners of real estate who are landlords. For the period starting from 5 June, our list has grown by six more regions.

Pepeliaev Group advises that amendments have been passed to the Federal Law “On information, information technologies and data protection”. These amendments establish new rules for restricting access to information disseminated in violation of copyright and/or related rights or legal requirements, and specify the procedure for restricting access to the information resource of a person organising the dissemination of information.

On 8 June 2020, the Russian President signed Federal Law No. 171-FZ “On amending the Russian Commercial Procedure Code in order to protect the rights of individuals and legal entities in connection with restrictive measures introduced by a foreign state, an association and/or union of states, and/or governmental (transnational) institution of a foreign state or association and/or union of states”.

Russian lawmakers continue to adopt regulations aimed at clearly defining the circle of not-for-profit and religious organisations to which property can be transferred for no fee and when relevant costs can be deducted for profit tax purposes.