Tax law and tax disputes

If a company is entered into a sanctions list, it is no longer obliged to disclose information Pepeliaev Group advises of the exceptions that the Russian Government has introduced with respect to the rules governing companies disclosing information regarding their business activity.

The supreme court has clarified the application of a reduced tax rate under a double taxation treaty to dividends in conditions of thin capitalisation On 6 March 2018 the Judicial Board for Economic Disputes of the Russian Supreme Court issued its Ruling in the case of SUEK-Kuzbass JSC. In this Ruling the Judicial Board has clarified the rules for applying a reduced tax rate under the Double Taxation Treaty with Cyprus to interest under controlled debt which was reclassified as dividends when the lender is not a shareholder of the borrower.

The new rules for notarial procedures Pepeliaev Group advises that new rules for notaries’ practice have been adopted and should now be taken into consideration when turning to notaries for notarial procedures.

Draft laws on the extension of the offshore amnesty have been submitted to the state duma and are to be adopted soon Pepeliaev Group advises that the draft laws have been published which, in line with the Russian President’s position, extend the ‘offshore amnesty’ as well as the tax-free liquidation of foreign entities and unincorporated structures.

Tax Authorities have tightened their requirements regarding the accuracy of information about the address (location) of a legal ENTITY Pepeliaev Group advises that the tax authorities have adopted a new practice for supervising compliance with the Law on the state registration of legal entities  

A legal status for cryptocurrency is happening

Pepeliaev Group advises that on 25 January 2018 the Russian Ministry of Finance published on its official website a draft law indented to regulate digital financial assets.

The Russian Constitutional Court and the Russian Federal Tax Service: Rules for holding individuals liable for companies’ tax debts

Pepeliaev Group advises of the legal position of the Russian Constitutional Court (the ‘Constitutional Court’) set out in Resolution No. 39-P dated 8 December 2017 and of letter No. SA-4-18/45@ of the Russian Federal Tax Service (the ‘Federal Tax Service’) dated 9 January 2018 containing clarifications for the regional tax authorities regarding the procedure for applying the specified position of the Constitutional Court.  

The concepts of a ‘foreign investor’ and of ‘foreign investments’ will be specified

Russian CFCS rules have been updated Pepeliaev Group advises that a law has been enacted regulating contentious issues of applying the Russian rules on controlled foreign companies (the "CFC Rules")

In St. Petersburg, a benefit for corporate property tax will be introduced in relation to movable property which was released no earlier than three years ago

Pepeliaev Group advises that the St. Petersburg Legislative Assembly, on 29 November 2017, adopted a law exempting from corporate property tax any movable property which was released no earlier than three years ago.

The Russian Supreme Court has confirmed the right to deduct VAT amounts in relation to transactions exempted from taxation

Pepeliaev Group advises that the Russian Supreme Court has confirmed the right of taxpayers to deduct VAT amounts charged by contractors when work on cultural heritage sites is performed.

The federal benefit for movable property will be abolished The institution of an investment tax deduction will be introduced into the Russian Tax Code

Pepeliaev Group advises that the Russian Government has submitted to the State Duma a draft law providing for an investment deduction to be established with respect to profit tax and for significant amendments to the application of the federal benefit relating to movable property starting from 2018.