
11.01.10

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A new year always means navigating your business through new legislation. This issue of the Alinga Market Update overviews some of the major new changes.
From a new law stipulating prison sentences for employees who accept "grey wages," to new changes to charter capital requirements, to the Constitutional Court striking down part of the Tax Code as unconstitutional, this issue outlines legislation from the past month that will affect your year ahead.
Let Alinga help you keep your New Year's resolution to have fewer problems with the tax inspectorate! Keeping reading the Market Update and contact us to find out how a RAS audit from Alinga can reduce your tax risk.
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Alinga News!
Interview: Chet Bowling
This interview originally appeared in The AmCham Enterprise Development Newsletter, a publication of the American Chamber of Commerce in Russia.

Employees May Receive Prison Sentences For "Gray Wages"
Employees may possibly get sentenced to prison for accepting so-called "gray" or unofficial wages, while employers may get off with only a fine.
Russians Continue To Accept "Gray" Wages
Most Russians do not refuse "gray" wages despite the risk of criminal penalties for not paying taxes on the income.
Notify Your Accountants!
There is much more "Accounting and Payroll" information available in the Russian version of this same newsletter!

Changes In Russian Tax Legislation For 2010
The main changes to the tax legislation that came into effect January 1, 2010 concern the Simplified Tax System (STS) and the Unified Social Tax (UST).
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!
Part Of Tax Code Declared Unconstitutional
Russia's Constitutional Court reported via its official website that it had ruled Article 165, Paragraph 5, Line 2, Point 1 of the Tax Code unconstitutional.
More Organizations To Receive Investment Tax Credit
A new federal law has expanded the list of instances in which the investment tax credit may be applied.
Monetary Limit Set For Tax Exemption On Gifts
According to the Department, the Tax Code does not require income tax to be levied on income equivalent to 4000 rubles or less if it was received by the taxpayer in the form of a gift from an organization.
Individuals May Be Able To Decrease Taxes On Property
Russia's Ministry of Finance has withdrawn its letter which allowed tax authorities to levy taxes on property.

Establishing a Legal Presence in Russia
Establishing a representative or branch office in Russia differs from company formation in both purpose and procedure. Article written by specialists of Alinga Consulting Group explains differences between the two.
Russian Legal Entities in Russia: What is the Difference Between a ZAO and OOO?
The most popular forms of a Russian Legal Entity (RLE) are the OOO (Limited Liability Company) and the ZAO (Joint-Stock Company). Brief examination of these two forms of legal entities is compiled by specialists of Alinga Consulting Group.
President Cancels Deadlines For OOO Re-registration Program
Russian President Dmitri Medvedev has approved a new Federal Law which eliminates the deadline that OOOs (LLCs) had for re-registering their charter documents.
Overview Of New Laws On Charter Capital
Recent changes to Russian federal law related to charter capital of OOO and AO.
Limits Set On Financial Organizations' Assets For Certain Business Transactions
The Russian government's press-service has reported that Prime Minister Vladimir Putin has approved a resolution "On Introducing Changes to Select Government Acts."
Ministry of Finance Proposes Controlling Foreign Companies' Beneficiaries
The Russian Ministry of Finance has prepared and sent an amendment to Article 7 of the Tax Code to the Department of Justice.
All Citizens Now Have Access To Court Information Online
The heads of the Constitutional, Supreme Judicial, and Supreme Arbitration Courts presented an important new project – the Russian Agency of Legal and Court Information.
Moscow Tax Authorities Trying To Prove Wrongdoing Using Registration Documents
Moscow's tax inspectors now have a new method of discrediting falsified VAT tax deductions – by proving that some companies’ business dealings are fictitious.
Court Legalizes Discounts
The Presidium of the Supreme Arbitration Court has ruled in favor of the company Dirol Cadbury (the Russian branch of the foreign company) in its dispute with the Federal Tax Service’s Interdistrict Inspectorate in the Novgorod Region.


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.
Tour of Volga Heartland (June 17 to 28 - Yaroslavl Region)
Join Suzanne Massie and Daniel Satinsky in this once-in-a-lifetime opportunity to see Russia through the eyes of its own people. See the smaller Russian towns and cities where most Russians live and discuss life with Russian entrepreneurs, artists, and students.
SRAS Offers Russian Trip! (July 10, 18 -or- August 7-15, 2010 - Western Russia)
This nine-day cultural travel package from Alinga partner The School of Russian and Asian Studies is unlike any tourism you've ever tried. Eat a home-cooked meal with Russians in their home. Create traditional painted porcelain under a Russian master. Sit in banyas and celebrate life with Russians who will show you how to sing, make toasts, relax, and laugh. Find more travel services from SRAS
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