Tax law and tax disputes

The list of affected sectors has been supplemented with water-borne and rail transportation The Government's Resolution No. 927 dated 26 June has added passenger transportation by rail (i.e. a long haul service), marine and inland water-borne transport to the list of sectors “affected” by the spread of the coronavirus infection.

Review of new regional measures for tax support of owners of commercial real estate We continue to monitor the news concerning the adoption of benefits in Russian regions with respect to property taxes for owners of real estate who are landlords. Please find below an overview table as at 29 June 2020.

The Regulation on the register of socially-oriented not-for-profit organisations has been approved

As we previously advised, Russian lawmakers continue to adopt regulations aimed at clearly defining the circle of not-for-profit and religious organisations to which property can be transferred for no fee and when relevant costs can be deducted for profit tax purposes.

Denunciation of the DTT with Malta Yesterday the Russian Ministry of Finance published on the government’s portal information that the development and discussion has started with regard to a draft law to denounce the Convention between Russian Government and Government of Malta for the avoidance of double taxation from 1 January 2021. 

The President’s address of 23 June: tax measures

On 23 June the President addressed the public regarding new initiatives to amend tax legislation. Please find below the specified initiatives with our comments.

Review of new regional measures for tax support of owners of commercial real estate

We continue to monitor the news concerning the adoption of benefits in Russian regions with respect to property taxes for owners of real estate who are landlords. For the period starting from 5 June, our list has grown by six more regions.

A draft law extending the application of the patent taxation system The Government has developed amendments to the Tax Code relating to the application of the patent taxation system (the “PTS”) and has submitted them to the State Duma. 

Expenses of a free-of-charge transfer to not-for-profit and religious organisations

Russian lawmakers continue to adopt regulations aimed at clearly defining the circle of not-for-profit and religious organisations to which property can be transferred for no fee and when relevant costs can be deducted for profit tax purposes.

Service of the Russian Federal Tax Service concerning the release from taxes and levies for Q2 2020

The Russian Social Security Fund has provided its comments concerning the granting of a deferral (an instalment plan) for the payment of accident insurance contributions The Russian Social Security Fund has explained how SMEs from the “affected” sectors and socially oriented not-for-profit organisations can obtain a deferral (an instalment plan) for the payment of contributions within the framework of compulsory insurance against accidents.  

The Russian Federal Tax Service has issued a reminder about the expiration of the deadline for filing applications for the April subsidy The Russian Federal Tax Service has issued a reminder that 1 June is the last day for filing applications for the April subsidy.

The Russian Ministry of Economic Development has formed a register of socially oriented not-for-profit organisations that will be provided with additional measures of support.

As we informed earlier, on 2 June the Federation Council (the upper chamber of Russia's parliament) approved the Federal Law “On amendments to part two of the Tax Code of the Russian Federation” (published on 8 June - Federal Law No. 172-FZ dated 8 June 2020).