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Alinga Consulting Group has stepped up its efforts to bring you even more market news from the Russian Federation. Our newly expanded and updated format is designed to be more visually interesting while bringing you even more of the articles from industry professionals, news from the Russian market, and business resources you've come to trust. You will notice that some articles are available only in Russian or in English, based on its intended readership. Feel free to forward these articles to your boss, your accountant, your lawyers, or anyone else you think might be interested by using the new "Mail this page" feature at the bottom of each page.
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109 Signs of a Suspicious Company in the Opinion of the Tax Inspector
Not long ago, the Federal Tax Service circulated an internal document called "109 Signs of an Suspicious Company in the Opinion of the Tax Inspector." The Alinga Market Update, through its sources, has obtained a copy of this list. Click here for a brief synopsis in English and a link to full list in Russian.
16 Typical Schemes for Evading Taxes
A company can expect numerous court battles and additional tax assessments if the inspectors begin denying reimbursement of VAT or tax reductions on profits using these guidelines, since many of the "schemes" are actually legal and have been used by businesses for some time.
Pregnancy and Childbirth Benefits Unlimited
The Constitutional Court of the Russian Federation declared unconstitutional a provision in Article 15 of the federal law "On the Budget Fund for Social Security of the Russian Federation for 2002," which limits the maximum amount of assistance for pregnancy and childbirth.
Regressive Scales for Unified Social Tax and Pension Fund Payments
All organizations and companies in the Russian Federation must calculate and pay contributions toward the Labor Pension Fund and those using the standard taxation system (as opposed to the simplified taxation system) must calculate and pay Unified Social Tax. This straight-forward resource will explain how these payments are calculated.
Overview of Corporate Profit Tax
An overview of the rates, exemptions, and schedule for corporate profit tax in the Russian Federation with a special focus on how this taxation affects foreign companies in the Russian Federation.
Declaring Personal Income Tax in the Russian Federation
Russians who meet the preceding requirements must file their declarations for the preceding tax period by April 30 at their local tax office (according to where they are registered). Foreign citizens who fall into these categories must file declarations with the Interdistrict Inspectorate of Federal Tax Service No. 47.
Review of Recent Changes to Tax-Related Legislation in the Russian Federation
This monthly Russian-language service from Alinga and regular feature of the Alinga Market Update is designed to bring your financial personnel a broad view of recent changes to the Russian Tax Code. Forward this link to them!
Government Approves Guidelines for RF Tax Policy for 2008-2010
But most noteworthy is the fact that all the major and often unpopular changes are scheduled for the period after 2008, that is, after the elections.
Tax Inspectors Circumvent Rules
During one field audit the tax authorities demanded that a large telecommunications company present 14 million documents within 5 days or pay a fine of 700 million rubles (at 50 rubles per document).
What You Should Know about Wills in the Russian Federation
The rights of foreign citizens, as pertains to the transfer of inherited property and as pertains to drafting and revoking wills, are to be equal to the citizens of all countries who have signed these international agreements.
International Norms in Franchising
Long-time friend of Alinga Consulting Group Arkady S. Lee puts the relatively new practice of Franchising in Russia in perspective with the rest of Europe and the US.
Government Decision on Labeling Imported Alcohol Amended
Changes detailed here.
Prices Must Be Stated in Rubles – Other Currencies May Also Be Listed
On 21 March 2007, the State Duma read for the third time and accepted in its final version a law mandating that the prices for goods and services be stated in rubles. The bill also would allow prices to be additionally stated, if necessary, in a foreign denomination.
Duma Approves Toughened Punishment for Violating Copyright Law
Intellectual piracy and the illegal use of a trademark will now be considered felony offenses punishable by six years of imprisonment (up from five years). The related fine has been raised from 200,000 to 500,000 RUR in addition to damages sought. There is no possibility of being granted amnesty. Investigators looking info the production and distribution of pirated goods (kontrafakta), may now use surveillance and bugging devices.
Find Job Vacancies Here Find Employees Here
Talent Development and Economic Growth in Russia
Daniel Macdonald works as an HR specialist in talent management at IBM's East Europe/Asia headquarters, which is located in Moscow, Russia. He contributed the following article to the newsletter of The School of Russian and Asian Studies, a company affiliated with Alinga Consulting Group.
Changes to Migration Law
The Federal Migration Service is offering a controversial amnesty to illegal immigrants currently residing within the Russian federation. At the same time, the government is looking to extend a controversial quota system restricting the employment of immigrants in certain sectors.
Russian Minimum Wage to Double
The State Duma has accepted amendments to the law "On the Minimum Wage" in their third and final reading. The amendments will increase the Russian minimum wage from 1100 RUR to 2300 RUR per month from 1 September, 2007.
National "Black List" for Managers in the Russian Federation
The Ministry of Internal Affairs additionally hopes, that it will help eliminate corruption within the national economy. Anyone, including both Russians and foreigners, may request information from the list for a service fee of 100RUR. Requests are to be processed in five days or less.
The Latest on Registration and Visas in Russia
The new registration procedure, which caused considerable worry for expats in Russia seems to be now more or less running smoothly, with the forms and processes set. IntelService, a reliable provider of Russian visas and related services, has just released this flyer which details in simple and concise terms the new registration procedure for business and tourist visas in the Russian Federation. We have obtained their permission to republish the document here. The Alinga Market Update will continue to provide up-to-date information on visa procedures in the RF.
US Citizen Working in Russia?
As a US Citizen, your income is taxable no matter where you earned it or where you were living during the time you earned it. There are, however, special deductions you may be able to claim as an American living abroad. For a detailed description of your rights and obligations, see the US Expatriate Tax Advisor, a service of ExpatCPA.com, which specializes in professionally filing American taxes for American expatriates.
New Medical Tests for Work Permits
The Moscow Healthcare Department, effective immedeately, requires medical tests for work permit applications to be carried out only at designated state centers. Furthermore, the regulations now require seven different tests: for tuberculosis, leprosy, HIV, syphilis, Chlamydia, genital chancres, and for drug addiction to certain narcotics.
On Friday, February 23, 2007, U.S. Treasury issued new Housing Exclusion Limitation guidelines, raising Moscow’s annual limitation to $75,720 for tax year 2006. Guidelines for 2007 are forthcoming. For more information, see the AmCham Background Guide.
Proposal to Criminalize Foreigners for Failure to Depart Russia
Failure to depart from the Russian Federation within one month after has been officially allowed, is punishable by imprisonment for a term not exceeding three years.
Official Economic Statistics for Jan-Feb
This general overview of macroeconomic indicators is available in Russian on our site.
PFRMSK.ru - This is the site of the Pension Fund of the Russian Federation for the Moscow Region. Through this site, you can request (only in Russian), information about any changes that companies have made to charters and more.
AmCham Investment Resources
AmCham has published transcripts of the keynote speeches made by RF Minister of Economic Development and Trade German Gref and U.S. Secretary of Commerce Carlos Gutierrez during AmCham's 8th Annual Investment Conference on its site in PDF format. These speeches are also available in video format. To veiw these, please download them from AmCham.ru.
"The Economy and Investment Climate in Russia," a special report prepared by AmCham, Ernst & Young and the RUIE Expert Institute for AmCham‘s 8th Annual Investment Conference, is also now available for download in both English and Russian.