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Welcome from Alinga!
This month's Alinga Market Update brings you several important news briefs about doing business in Russia, and a handful of featured articles on legal and HR issues. As usual, we have also kept our focus on issues of importance to foreigners working in Russia. We would also like to point out that this year marks the 200th anniversary of US-Russia Relations. Several events are planned in America and Russia to mark the event. See, for example, events listed at USRCCNE.org
(in America) and the US Embassy in Moscow's website
. We hope this festive year finds your business and career in Russia doing well!
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Notice! 2008 Russian Holidays Changed
Sunday, May 4 will be a working day while Friday, May 2 will be a day off; Saturday, June 7 will be a working day while Friday, June 13 will be a day off; Saturday, November 1 will be a working day while Monday, November 3 will be a day off. See the full calendar here!
Notify Your Accountants!
There is much more "Accounting and Payroll" information available in the Russian version of this same newsletter!
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!
Schemes to Avoid Paying Unified Social Tax
The Administration of the FTS in Moscow sent out to city tax offices a document listing the most common schemes used for avoiding paying the Unified Social Tax (UST).
Income Tax Refunds for Foreigners
In order for a foreigner to recover excess income tax paid in Russia, he needs to submit a written request to his tax agent. The request must contain the payee’s bank account number for the tax reimbursement (Letter of MinFin of the Russian Federation published on August 13, 2007, number 03-08-13).
Registration of Legal Entities To Be Made More Complicated
The proposed bill allows the registration to be put on hold if authenticity of the submitted information seems questionable. The procedure may also be suspended in response to a complaint of an interested party.
Tax Authorities Once Again Invites Informers
Recently the FTS addressed citizens of Russia with an invitation to anonymously report any tax schemes they are aware of being used in the real estate market and the organizations involved.
Analytical Review of Corporate Documents
The proper drafting and filing of corporate documents is perhaps the single most important aspect in forming a business in Russia; it is literally a make-or-break issue.
Problems in Providing Expeditious Judicial and Arbitration Proceedings
According to Article 10 of the Civil Code of the Russian Federation, actions by citizens and legal entities, performed with the intent to cause harm to others or to abuse the rights of others are prohibited. The practical meaning of this regulation implies that, in cases of its violation, the court can refuse to protect a person's rights.
Companies With Different Forms of Organizational Structures May Be Allowed to Merge
Currently, mergers and acquisitions are only possible between companies with a similar organizational structure; prior to such moves, companies must first change their form of ownership.
The Law On Insider Trading Will Allow Monitoring Of Brokers
It includes provisions for access to records of all brokers’ conversations kept by their companies. As soon as the new law is passed, the FFMS plans to use its right.
Time Limitation On Address Change Penalty is Two Months
If an entrepreneur fails to inform the Federal Tax Service of a change in his/her registered residence, the Tax Inspection may penalize him/her only within the space of two months after the relocation, not two months after the violation is discovered.
Find Job Vacancies Here Find Employees Here
Modern Human Resource Issues in Russia
This article will cover a few points that companies should keep in mind concerning issues of personnel in Russia, which can make or break a company. (Originally published by USRCCNE.)
FMS Creates New Work Permit Database
By inputting six values for a foreign employee (such as last name, date of birth and permit number) one can receive confirmation by email whether the permit was indeed issued to the holder or if it is counterfeit.
Minimum Monthly Wage Raised to 2,300 Rubles
Starting September 1st the minimum monthly wage (MMW) in the Russian federation will increase to 2,300 rubles. This is according to Federal Law # 54-ФЗ, published on April 20, 2007. The document also allows constituent entities of the Russian Federation to specify their own MMW which must not be lower than federal rate.
Hiring Illegal Workers is Becoming More Expensive
Employers have paid approximately 150 million rubles to the the Federal Migration Service (FMS) since the beginning of this year.
Notifying The FTS About New Foreign Employees
The FTS and the Federal Migration Service are establishing information exchanges and mutual support for issues concerning immigrant labor in the RF.
Registration for Foreign Citizens in the Russian Federation
Notes from a seminar on the subject held by AmCham on this often confusing issue.
Language Resources for Students of Russian
Most folks now building successful careers in Russia agree that their success (or lack of it) is becoming more dependent on their ability to speak Russian. This resource is a concise listing of some of the Internet's best resources for students of the Russian language, developed by Alinga partner company The School of Russian and Asian Studies.
Putin Criticizes American Law On Investments, May Make Russian Laws Harsher
Vladimir Putin sharply commented the law passed in US in the end of July regulating access of foreign investors into American economy saying that Russia will need to "take steps for protecting its interests."
Foreigners Control 20% of Capital of Russian Banks
Further growth is inevitable, but it does not present a threat, according to the Central Bank and the Ministry of Finance.
Resource: Central Asia
While Alinga does not offer business services in Central Asia, we know many of the international companies we serve in Moscow are looking at this profitable region. Alinga partner company The School of Russian and Asian Studies has recently developed this web resource to give a quick overview of the politics, economy, and culture of Central Asia.
Alinga to present at AmCham Annual Tax Seminar on September 26th
Alinga is pleased to once again co-sponsor and present at the AmCham Annual Tax Seminar. Chet Bowling, Partner, will speak on the subject "Secondment of Foreign Staff - Major Tax Implications."
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