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Welcome from Alinga!
As we all look for "light at the end of the tunnel," the US Federal Reserve released yesterday a much-awaited statement on the status of the world's largest economy. While being the most confident statement made since the crisis began, that confidence was limited to stating that economic activity is "leveling out" and interest rates will likely remain at current levels for "an extended period." Commentators in the media have been split. While most could see that light that the Fed pointed to, there is little agreement as to when economic indicators are likely to swing positive or what future actions might be excepted from the Fed. Market reaction was equally split. While there may be light, there is still, it seems, considerable tunnel to travel for the US.
In Russia, where the economy is heavily dependent on exports to global markets, we believe that businesses should and will continue to follow a conservative policy in controlling costs. Our latest analytical issue of the Alinga Market Update is largely geared to help SMEs in Russia do exactly this. With articles on whether simplified taxation is right for your business and how you might use the IFRS standards to attract more investment, we hope this publication will be help you plan your path for the second half of 2009.
Also be sure to note that if you are an OOO in Russia, you must re-register your company under new rules! Click here for more information.
If you have comments, questions, or suggestions on other ways we can improve our site and newsletter, please contact the editor at firstname.lastname@example.org! To subscribe to this newsletter, send an email with "Subscribe Alinga" in the subject field to email@example.com.
Debt Refinancing: Tax and Accounting Issues in Russia
The decision to refinance requires the borrower to carefully consider all pros and cons. Besides the usual questions of making sure that the refinancing is economically and legally feasible, businesses in Russia must also consider whether the refinancing, the method of refinancing, and how the refinancing is accounted for may attract the attention of the tax authorities.
Notify Your Accountants!
There is much more "Accounting and Payroll" information available in the Russian version of this same newsletter!
Russia's Simplified Taxation: Part I - The Basics of the System
Russia's simplified tax system (STS) is often attractive to those looking to cut costs, which is a major concern in today's market. But what exactly is STS? This article will lay out the basics of what every company manager considering transferring to STS should know.
Russia's Simplified Taxation: Part II - Advantages and Disadvantages
STS has shortcomings that can actually increase, not decrease, expenses, depending on your business type, expense structure, and other issues. This second part of our two-part series will detail the positive and negative aspects of STS in comparison with regular taxation.
IFRS For Small And Mid-Sized Entities
We hope that small and medium sized enterprises in Russia will also now more readily adopt these accounting techniques. While businesses are still be legally required to maintain their tax accounting in RAS (Russian Accounting Standards), these new techniques will make IFRS more accessible to SMEs hoping to attract foreign capital.
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!
Absence Of Profits Is Also A Valid Result
Entrepreneur does not always secure profits, Federal Arbitration Court agreed.
Taxes Paid Abroad May Be Taken Into Account
Companies with representative offices abroad are allowed to take into account, when figuring their profit taxes for Russia, profits received and taxes paid abroad.
Tax Inspectors Bring Cameras To Desk Audits
Tax inspectors are increasing the number of checks for companies that have declared significant tax deductions or expenses – and they come to photograph the company’s property.
Legal Precedent In Russia: Taxation Issues
A short guide to Russia's high courts, written for foreign business professionals.
Cash Registers Unneeded
A new law signed by the president relieves entrepreneurs filing Uniform Tax on Imputed Income of the need to use of cash registers.
Russia's Medvedev Signs Law on Anti-Corruption Examination of Regulatory Acts
President Dmitry Medvedev has signed the Federal Law "On Anti-Corruption Examination of Regulatory Acts and their Drafts" adopted by the State Duma on July 3, 2009 and Approved by the Federation Council on July 7, 2009.
An Appeal Without The Appellant
A company appealed the findings of a tax inspection to the Higher Tax Authority. However, the appeal was considered without the taxpaying company’s representation or participation.
Medvedev Offers New Ethics Code
Russian President Dmitry Medvedev has mapped out the ethics code for the Russian bureaucracy - the general principles of government employees' occupational conduct.
FMS To Legalize Passport Market
The Federal Immigration Service has decided to find a way to benefit from some $10 billion that it says is earned annually by people illegally working to speed the processing of work visas and passports for overseas travel.
Pending Trade Law Already Gathering Momentum
Some of the largest retailers are already using revised supplier contacts that are in accordance with the norms of an impending trade law.
Officials Given Extra Time On Amendments
A proposal is being considered to lengthen time allotted to government officials to correct laws affected by the rulings of the Constitutional Court.
Corporate Procedures In Russian Companies Relocate Into The Internet
A first in legislative innovation – notifying stockholders about meetings through the Internet.
Forceful Tactics Continue To Daunt Businesses
Government officials have numerous methods of pressuring small businesses.
Find Job Vacancies Here Find Employees Here
Average Monthly Wage in Russia
While the economic crisis did take a substantial toll on Russia's average wage, the numbers, according to the Russian Federal State Statistics Service, are growing substantially again. However, this does not account for unpaid wages, which have become a more pressing problem, nor does it account for employees currently on forced leave or reduced schedules.
Limitations On Length Of Forced Leave May Be Lifted
The number of employees on forced leave and reduced schedules is decreasing.
Retail Does Not Need Migrant Workers
Russia's Federal Migration Service has issued an official recommendation that its employees avoid issuing work permits for migrant workers to be employed in retail.
Notify Your HR!
There is much more HR information available in the Russian version of this same newsletter!
Internationally Mobile Workers: Summary Of Recent Changes
The following information was prepared by HW Fisher & Company, a firm of chartered accountants in the UK. It has been reproduced here with permission for the benefit of those readers of the Alinga Market Update who are affected by UK taxation regulations.
Economic News In Review
The following resource is meant to quickly introduce the reader to some of the major English-language commentary concerning the current financial crisis in Russia, how that crisis might affect Russia's government and ruling structure, and what the international outlook is for Russian business.
Easier Employment For Foreign Financial Experts In Russia
Legislators intend to simplify procedures for banks and financial institutions hiring foreign specialists.
Registration Deadlines For Foreigners
A new bill in the Duma might allow foreign citizens to register within seven business days. Those who receive temporary or permanent residency would still need to register within three days.
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