Tax law and tax disputes

The new rules for forming the register of SMEs will help entrepreneurs On 7 November, Federal Law No. 349-FZ dated 27 October 2020 came into force, which amended the legislation on developing SMEs.

Amendments to the Russian Tax Code to raise investment attractiveness of Russian companies Pepeliaev Group advises that Federal Law No. 368-FZ dated 9 November 2020 (the “Law”) has come into force which provides for a possibility to deduct a monetary contribution to a company’s property when a member withdraws from company, the company is liquidated or its membership interests/shares are sold. The Law has also introduced targeted amendments as to how an investment tax deduction should be applied.

The Federal Tax Service has published draft electronic forms and the formats of documents for conducting tax monitoring Pepeliaev Group advises that a draft Order of the Russian Federal Tax Service has been posted on the federal portal of draft regulations approving forms, and formats of documents, used for tax monitoring, as well as requirements for them. 

Additions to the CFC taxation rules: indulgence and an increase of pressure

A protocol has been prepared on amending the DTT with Luxembourg Pepeliaev Group advises that the Russian Government has prepared a draft of the DTT with Luxembourg that proposes changes in the taxation of dividend and interest income.

The Supreme Court’s position regarding the classification of income when double tax treaties are applied Pepeliaev Group advises that the Russian Supreme Court (the “Supreme Court”) has formed a legal position regarding the income of foreign entities being subject to Russian withholding tax.

The procedure for holding a mutual agreement procedure on DTT issues has been approved Pepeliaev Group advises that order No. 102n of the Russian Ministry of Finance dated 11 June 2020 approved the Procedure for a mutual agreement procedure application to be filed and reviewed in accordance with the provisions of a DTT .  

New approaches of the Russian Supreme Court to intra-group financing

Pepeliaev Group advises on a ‘substantive’ change in the approaches to the use of thin capitalisation rules.

Protocols with Cyprus and Malta have been agreed

Pepeliaev Group advises of the amendments to the double taxation treaties with Cyprus and Malta and the increase of tax rates for dividends and interest.  

The Russian Federal Tax service has published new recommended forms and formats of documents used when a company enters into and is subject to tax monitoring

Pepeliaev Group advises that, the Federal Tax Service in its Letter No. BV-4-23/13939@ dated 31 August 2020 forwarded new recommended forms and formats for submitting the documents used when a company enters into and is subject to the tax monitoring.

The Russian Federal Tax Service about the adequacy of expenses on the prevention of the coronavirus infection

Draft law to amend the Russian Tax Code in view of the tax monitoring being improved

Pepeliaev Group advises that the draft law to amend the Russian Tax Code (the “Tax Code”) in view of the new developments in the tax monitoring has been published on the federal portal for draft regulations.