On what date should property tax be levied on a constructed real estate asset: Russian Supreme Arbitration Court will provide its response 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.

Amendments to the Double Taxation Treaty with Cyprus 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.

On the Skolkovo innovation centre On 28 September, Federal Law No. 244-FZ “On the Skolkovo innovation centre” was adopted, together with Federal Law No. 243-FZ of the same date “On amending specific legislative acts of the Russian Federation in connection with the adoption of the Federal Law ‘On the Skolkovo innovation centre’."

“Counter-reform” of the VAT Law: New draft law from the Russian Ministry of Finance Pepeliaev Group advises that the Russian Ministry of Finance has published on its official website a draft law  proposing to introduce, from 2011, a series of amendments into the VAT calculation regime, concerning settlement differences, the recovery of tax when property is lost, discounting and other issues affecting the position of companies.

Changes in the Employment Conditions of Foreign Citizens Pepeliaev Group hereby informs on changes in the conditions of employment of foreign citizens: the list of positions not subject to the employment quotas has been extended; starting from 1 January 2011 the inviting party is no longer required to pay a filing fee to register foreign citizens for migration purposes.

The transmission of publicly accessible mandatory TV and radio channels: the State Duma adopted a draft law in the first reading Pepeliaev Group advises that on 29 October 2010 the Federal Law “On Amending the Federal Law ‘On Communications’” comes into force. This Law amends the legal regulation of transmission of publicly accessible mandatory TV and radio channels.

Federal Law “On Amending the Russian Code of Administrative Offences” has been adopted Pepeliaev Group advises that Federal Law No. 239-FZ dated 27 July 2010 “On Amending the Russian Code of Administrative Offences” has been adopted.

On Recent Amendments to Tax Legislation Pepeliaev Group advises that the State Duma adopted on 9 June 2010 in a second decisive reading the draft law submitted by the Government introducing amendments to Part One and Part Two of the RF Tax Code.

The law establishes liability for the submission of false data to the Unified State Register of Legal Entities, resolutions of general meetings of participants (shareholders) or the boards of directors of business entities Pepeliaev Group advises that Federal Law No. 147-FZ dated 1 July 2010 entered into force on 5 July 2010. The Law establishes criminal liability for the submission of false data to the Unified State Register of Legal Entities, register of holders of securities, depositary accounting system, as well as for the fabrication of the resolutions of general meetings of shareholders (participants) or a board of directors (supervisory board) of a business entity.

Submission of Personal Data to Court Bailiffs Pepeliaev Group advises that the authorities of court bailiffs in respect of the receipt of personal data have been expanded by Federal Law No. 213-FZ dated 27 July 2010 “On Amendments to Federal Law No. 118-FZ dated 21 July 1997 “On Court Bailiffs” and Article 64 of Federal Law No. 229-FZ dated 2 October 2007 “On Enforcement Proceedings” on Issues of Submitting Personal Data to Court Bailiffs”.

A case on the application of the 32% rate and profit tax legislation of 1994 by contractors under the Sakhalin-II PSA A case on the application of the 32% rate and profit tax legislation of 1994 by contractors under the Sakhalin-II PSA for calculating their profit tax was referred to the Presidium of the RF Supreme Arbitration Court.

Tax legislative initiatives in the aviation sector Pepeliaev Group advises on the most significant draft laws on taxation in the aviation industry.