Tax law and tax disputes

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.

The Russian President’s Decree on non-working days: the deadline issue gets complicated

The Decree of the Russian President dated 2 April 2020 established non-working days from 4 April 2020 until 30 April 2020. Accordingly, taking into account that amendments have been adopted to article 6.1 of the Russian Tax Code, the deadlines for filing tax reports and for the payment of taxes have been extended until the first working day.  

Personal Income Tax: interest on deposits and income from securities

Pepeliaev Group advises that the State Duma has adopted amendments to the Russian Tax Code which impose a new taxation regime for income in the form of interest on deposits placed into deposit bank accounts, as well as for certain types of income from securities.

Deferrals (instalment plans) for the payment of taxes and insurance contributions to social welfare funds as measures of overcoming the economic implications of the new coronavirus

Pepeliaev Group advises that the government is examining proposals aimed at overcoming the implications of the new coronavirus infection.

Situation centres are set up at tax authorities to monitor the economy in connection with coronavirus

Working groups within tax inspectorates are starting to monitor the economy

Tax risks for individuals in connection with limitations aimed at preventing the spread of Covid-19

Pepeliaev Group advises of potential tax risks in a situation when individuals have to stay in the Russian Federation for an extended period of time in view of the current restrictions that are preventing the spread of COVID-19.