Tax law and tax disputes

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.

The Russian Supreme Court has formulated its position regarding the application of a reduced profit tax rate by residents of Special Economic Zones Pepeliaev Group advises that the Russian Supreme Court has asserted the right of residents of Special Economic Zones to apply a reduced profit tax rate to foreign exchange gains.

Changes in tax benefits. Benefits for production modernisation

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 the federal benefit relating to movable property to remain in effect for 2018.

Draft law specifying the Russian CFC rules

Pepeliaev Group advises that a draft law has been prepared on contentious issues of applying the Russian rules on controlled foreign companies (CFCs)

The Law To Counteract Tax Schemes Pepeliaev Group advises of the upcoming entry into force of Federal Law No. 163-FZ dated 18 July 2017, which introduces into the Russian Tax Code article 54.1 “Limits for exercising the rights to assess the tax base and/or an amount of tax, levy, or insurance contributions”. This article sets out general regulations for counteracting tax fraud and tax abuses. 

Explanations of the Russian Federal Tax Service on issues of applying the concept of a ‘beneficial owner’ Pepeliaev Group advises that the Russian Federal Tax Service has issued its explanations on issues concerning tax agents applying reduced taxation rates when withholding tax from the income of foreign companies

State Commercial (‘Arbitration’) Court for the Moscow circuit: parties may set a special procedure for exercising their right to withdraw from a contract Law firm Pepeliaev Group advises that Commercial Court for the Moscow Circuit has issued a decision in which it upheld the argument of Thomson Reuters (Markets) SA, a client of Pepeliaev Group, that the provisions of a fee-based contract for information services were lawful and bound the customer when stipulating that the contract terminated 12 months after the customer gave notice of its withdrawal from the contract.

Explanations of the Supreme Court of the Russian Federation regarding specific features of liability for economic crimes Law firm Pepeliaev Group reports that the Plenum of the Russian Supreme Court has adopted a Resolution

Recognition of severange payments to employees when their employment agreement is determinated: the new position of the Russian Supreme Court Pepeliaev Group advises of changes in the court practice concerning the recognition of expenses from severance payments made to employees when their employment is terminated.

The electronic services of foreign companies are subject to VAT in Russia Pepeliaev Group advises that, on 1 January 2017, a Federal Law comes into force, which establishes the procedure for applying VAT to services that foreign companies supply to Russian consumers in electronic form. The Law also establishes a specific procedure for such companies to register with the Russian tax authorities.

New investment projects in Sakhalin Law Firm Pepeliaev Group advises that on 2 August 2016 Yu. P. Trutnev, the Deputy Prime Minister and the authorised representative of the Russian President in the Far East Federal District, announced that a project involving the creation of a fishing cluster is being prepared for implementation in the context of the Free Port Korsakov.