Tax law and tax disputes

News item The Russian Ministry of Finance has addressed the competent authorities of Luxembourg and Malta On 13 April, information appeared on the official website of the Russian Ministry of Finance that a proposal had been sent to the competent authorities of Luxembourg and Malta to amend the double tax treaties with these countries.

The OECD secretariat has issued recommendations concerning the application of international double tax treaties during the Covid-19 pandemic

On 3 April 2020, the OECD Secretariat published recommendations concerning the procedure for applying international double tax treaties in the context of restrictions imposed by governments and aimed at preventing the spread of the COVID-19 infection. 

An exemption from customs duties and VAT for goods imported into the Russian Federation to guard against and counteract the spread of the Coronavirus infection

Russian Special Administrative Regions attract foreign investors

Pepeliaev Group advises that the Russian Ministry of Economic Development is developing a draft law to expand benefits for residents of Special Administrative Regions (SARs).

Remote examination of tax audit materials: PG’s comments on Order No. 32ED-7-2/181@ of the Russian Federal Tax Service dated 20 March 2020 On 20 March 2020 the Russian Federal Tax Service (the “Federal Tax Service”) issued its Order No. 32ED-7-2/181@ whereby as a measure to prevent the spread of the coronavirus infection, tax control activities involving direct contact with taxpayers are prohibited, and telecommunications channels (TCC) and video conferencing services should be used for decisions to be made following the examination of tax audit materials. 

The Russian Ministry of Finance has informed Luxembourg and Malta that the double taxation treaties should be amended with regard to dividend and interest income.

Pepeliaev Group advises that the Russian Ministry of Finance has sent, via diplomatic channels, notification letters to the competent authorities of Malta and Luxembourg requesting that the respective Double Taxation Treaties (“DTTs”) be amended.

The procedure has been regulated for operations to be carried out on residents’ accounts (deposits) in foreign financial market institutions

Pepeliaev Group advises of the publication of the Bank of Russia's Instruction No. 5371-U dated 24 December 2019 "On cases of funds being credited to accounts (deposits) of residents opened in financial market institutions located outside the Russian Federation, and funds being debited from such accounts (deposits)". 

How dividend and interest income will be taxed when paid to Cyprus residents Pepeliaev Group advises that on 31 March 2020 the Russian Ministry of Finance sent Letter No. 03-08-06/25267 to the Cyprus Ministry of Finance through diplomatic channels. The Letter contains a draft of the Protocol to the Double Taxation Treaty that provides for a significant amendment of the taxation procedure with respect to dividend and interest income.

The deadline of the tax return campaign has been extended for individuals.

Pepeliaev Group advises that the tax return campaign for individuals has been extended for 3 months.

A Federal Law has been adopted to adjust criminal liability for tax and currency crimes

Pepeliaev Group advises that the Russian President has signed Federal Law No. 73-FZ dated 1 April 2020 to amend the Russian Criminal Code concerning liability for tax and currency crimes.

Support for the economy: the Government is preparing measures

Covid-19: ‘Tax Superpowers’ of the Government, Personal Income Tax on income from deposits, and insurance contributions

Pepeliaev Group advises that, on 31 March 2020, the Russian State Duma adopted a Federal Law which lays down the first legislative tax measures aimed at supporting the economy against the backdrop of the coronavirus pandemic.