Tax law and tax disputes

The Social Security Fund on expenses to prevent Covid-19

In its Letter No. 02-09-11/12-05-19094 dated 5 August, the Russian Social Security Fund explained the rules for reimbursing expenses to prevent the coronavirus (COVID-19) using accident insurance contributions.

The acceptance of applications for the subsidy to prevent Covid-19 may be extended up to 15 September

On the website of the federal portal of draft regulatory legal acts, a draft resolution of the Russian government has been published proposing that the period for accepting applications be extended up to 15 September 2020. The extension is explained by the fact that only 50 % of the budgetary funds allocated in an amount of RUB 20 billion have been disbursed.

The Federal Tax Service has published clarifications on the taxation of intra-group services Pepeliaev Group advises that on 6 August 2020 the Russian Federal Tax Service published on its official website the clarifications of individual issues relating to the taxation of intra-group services.

A tax manoeuvre in IT: the law has been adopted Pepeliaev Group advises that, the State Duma has adopted the law which implements a tax manoeuvre in the IT industry.

Denunciation of DTT with Cyprus: a farewell or an ultimatum?

Pepeliaev Group advises that the Russian Finance Ministry has announced on its official website the launch of the unilateral denunciation of the double tax treaty with the Republic Cyprus.

Governmental draft law to materially amend the Russian Tax Code: issues of tax administration and taxation of transactions inside the country

Pepeliaev Group advises that the Russian Government has prepared a draft law to amend the Russian Tax Code (the “Tax Code”) with respect to the implementation of individual areas of tax policy. 

Government’s draft law to materially amend the Russian Tax Code: taxation of cross-border transactions

Pepeliaev Group advises that the Russian Government has prepared a draft law to amend the Russian Tax Code in order to implement certain areas of the tax policy. 

A draft law on adopting a new control system has been put be-fore the State Duma

Pepeliaev Group advises that it is planned to introduce a national tracking system starting from 1 January 2021: a draft law to this effect has been put before the State Duma.

The ‘coronavirus’ support measures have been adjusted

The Russian Government’s Resolution No. 1032 dated 11 July 2020 introduced amendments to the support measures for socially oriented non-for-profit organisations which were ‘adversely affected’ by the coronavirus restrictions.

The Government has approved the possibility to cut the tax residence period in 2020 down to 90 days It was approved today at the session of the Russian Government that individuals who stay in the Russian Federation from 90 days up to and including 182 days may recognise themselves as Russian tax residents in 2020 and, consequently, pay personal income tax at the rate of 13%, rather than the rate of 30% as established for non-residents. 

The Federal Tax Service of Russia has launched a service for paying subsidies on preventing Covid-19

 Starting 15 July, organisations and entrepreneurs from “affected” industries and also socially-oriented not-for-profit organisations will be able to receive a subsidy of RUB 15.000 and on top of that RUB 6.5 for each employee for reimbursing expenses on the prevention of coronavirus.

The Russian Constitutional Court has limited recovery from individuals if no arrears can be recovered from a taxpayer

By its Resolution No. 32-P dated 2 July 2020 the Russian Constitutional Court has banned recovery from individuals under a civil law procedure (article 1064 of the Russian Civil Code) of damage caused to the state in the amount of arrears provided that the impossibility to recover such arrears in the manner established by tax legislation is not connected with the actions of the individual.