|
|
|
The Rough Guide To IFRS In Russia
Reports prepared according to IFRS principles are necessary for companies working with foreign partners, companies looking for ways to attract foreign capital or credit, companies with foreign stock, and for companies with a professional corporate culture and long term business outlook.
Transfer Pricing - Where Is It?
It is likely that few, if any, companies are simply indifferent to the bill on funds transfer pricing that has been in the development phase for a few years already. We will take a moment to look at the bill’s principle provisions and problems.
Hiring Foreign Employees
When hiring a foreigner, companies can run into various problems: obtaining work permits for foreign citizens and notifications from regulatory authorities. This article aims to point out all the underlying potential problems that companies may run into if they decide to hire a foreign citizen.
Our Resume
New page on Alinga's website will introduce you to our history, our name, our mission, as well as our licences and memberships.
Alinga is Growing!
we are seeking: |
 Âåäóùèé ñïåöèàëèñò îòäåëà áóõãàëòåðñêîãî ñîïðîâîæäåíèÿ
Àññèñòåíò îòäåëà áóõãàëòåðñêîãî ñîïðîâîæäåíèÿ
Ñïåöèàëèñò îòäåëà áóõãàëòåðñêîãî ñîïðîâîæäåíèÿ
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!
Policy Matters: Russia & Post-Crisis Financial Reform
The August issue of Policy Matters analyzes the potential consequences of international financial reform on Russia’s financial markets and on Moscow’s competitiveness as an emerging financial center.
In Russia, a Shortage Triggers Soviet Habits
Russian supermarkets are well-stocked these days, but a sudden scarcity of buckwheat, a beloved staple, has many in a panic.
Nizhny’s Linda Poultry on sale
Moscow’s Prodo is seeking a buyer for its loss-making Linda Poultry in the Nizhny Novgorod region. With an expected less that $30m fire sale price it looks like a good deal. But is it worth spending that much plus an annual $15m for years to revamp the farm that now faces, alongside other Russian poultry plants, imminent U.S. competition?
Alinga Consulting Group
+7 (495) 988-21-91
consult@acg.ru
|
|
 |
|
Welcome!
This month we bring you three new analytical articles from our audit department! Our new Rough Guide to IFRS, written by Manager Alexei Spirikhin, who recently celebrated five years with Alinga, will let you know what international accounting standards can do for your company – and how you can effectively implement them. In Hiring Foreign Employees, our up-and-coming new addition to our audit team, Alexander Kulikov, writes in detail about the steps a company needs to take, to hire, fire, or maintain the employment of a foreigner. Lastly, let our Audit Department Director introduce you to Russia's new law on Transfer Pricing.
Feel free to contact us about any of the issues or services described in these articles. Alinga is always at your service.
How to Avoid High Taxes On Employee Vacation Time
Recent discussions have brought up questions on how to avoid having to pay high amounts of taxes and dues when providing employees with vacation. The ratification of the International Labor Organization’s Convention 132 “On Paid Vacation” (Federal Law #139-FZ dated 07.01.2010) has generated particular interest. Experts say, “The Convention really doesn’t contain anything new.” “Such a contentious prohibition on accumulating vacation is also in Article 124 of the Labor Code. It prohibits failure to provide vacation time within two consecutive years and Article 9 in the Convention has similar regulations. An explanatory note to Law #139-FZ also indicates that the Convention is fully manifested in Russian legislation, therefore ratifying it does not require changing anything in Russia’s Labor Code.
Paying Insurance Premiums For Foreign Employees
In accordance with Article 7 of Federal Law #167-FZ “On Mandatory Retirement Insurance in Russia,” dated 12.15.2001, not only Russian citizens but also stateless persons or foreign citizens either permanently or temporarily living in Russia are required to have such insurance. The legal status of foreign citizens, as well as legal relationships arising in connection with foreigners staying (residing) in Russia and conducting business or other activities, is determined and regulated by Law #115-FZ “On the Legal Standing of Foreign Citizens in Russia,” dated 07.25.2002.
Featured Articles:
The Rough Guide to IFRS in Russia
International Financial Reporting Standards (IFRS) are used by the majority of the world’s countries. In Russia, IFRS is becoming more and more popular every year. Companies that use or would like to use IFRS understand that without using a system of unified financial reporting that is transparent and understandable to the majority of "players" in the market (in both domestic and international markets), their business will not develop. Reports prepared according to IFRS principles are necessary for companies working with foreign partners, companies looking for ways to attract foreign capital or credit, companies with foreign stock (for standardizing the parent company’s consolidated reports), and for companies with a professional corporate culture and long term business outlook.
Transfer Pricing – Where Is It?
It is likely that few, if any, companies are simply indifferent to the bill on funds transfer pricing that has been in the development phase for a few years already. By the time of its second reading in June, the bill had undergone significant amendments, but still passed the second reading. What next? It’s promised that the bill will become law by the end of the year, but should this process be rushed? As is already known, the bill on funds transfer pricing excludes Article 20, “Interdependent Entities,” and Article 40, “Principles for Determining Prices on Goods, Work, and Services for Tax Purposes,” from Russia’s Tax Code. Instead of these articles, it has been suggested to introduce a separate division devoted to accounts between interdependent entities. We will take a moment to look at the bill’s principle provisions and problems.
Hiring Foreign Employees
In the modern day global economy, many companies hire foreign citizens. When hiring a foreigner, companies can run into various problems: obtaining work permits for foreign citizens and notifications from regulatory authorities. This article aims to point out all the underlying potential problems that companies may run into if they decide to hire a foreign citizen.
Founding Shareholder Withdraws From Limited Liability Company
One of the founding shareholders of a foreign company may apply to withdraw from ownership in the company. Monetary compensation is outlined for the withdrawing shareholder of the company (OOO), indicating that the amount is “payment for the portion of actual share cost to the company’s shareholder in conjunction with the shareholder withdrawing from the company.” Are these payments subject to profit taxation for both the company and the tax agent? In Letter #03-03-06/1/519 dated 08.03.2010, the Ministry of Finance draws our attention to the fact that the foreign company’s obligation to calculate, deduct, and pay profit tax to the government is the responsibility of the tax agent – the company paying out income to the foreign organization.
Foreign Employees Working Overseas Do Not Need To Pay Personal Income Tax
The Ministry of Finance has explained the issue of personal income taxation for individuals working outside of Russia in Letter #03-04-06/6-158 dated 07.23.2010. It was based on the particular example of a Russian state unitary enterprise that employs a Spanish citizen, whose permanent place of residence is Venezuela, where he also performed the work in question. In this case, the commercial services contract represents the enterprise’s interests in Venezuela, and not Spain. The Letter notes that the object of personal income taxation is the income received by the Russian tax residents either from sources in Russia or from sources outside of Russia; but for individuals who are not residents for tax purposes – only from sources in Russia.
New Bill Could Improve Foreigners’ Family Lives in Russia
The State Duma has accepted for review bill #418806-5 “On Introducing Changes to Separate Legislative Acts of the Russian Federation,” which provides for “creating favorable home environments” for foreign specialists in Russia. According to the bill's author, the document is intended to simplify and liberalize legal regulations on receiving work permits for foreign citizens who are legally recognized as highly-qualified specialists, as well as for members of their family. The procedures currently in place for foreign citizens who are highly-qualified specialists to get a work permit provides for processing entry invitations only for their initial entry into Russia and does not extend to foreign specialists who are already legally in Russia for a time period that has not yet lapsed. The proposed bill would allow the foreigner to extend the time limit on their temporary stay (or residence) at the same time that they receive their work permit.
Authorities Ban Wheat Exports As Of August 15
Prime Minister Vladimir Putin announced a ban on wheat and grain exports outside of Russia at a recent government presidium meeting. Although the country has sufficient reserves, Putin believes that agricultural producers’ exports may raise prices in the domestic market. According to Putin, the ban will be in effect from August 15 through December 31, 2010. Putin explained how assistance to farmers would be organized. First, the government will distribute grain from the Reserve Fund not according to auction sales, but according to direct requests from the regions. Secondly, agricultural producers will receive 35 billion rubles in two stages – the first in August and the second in October or November. Ten billion of these rubles will be given in the form of grants, essentially as free aid. The remaining 25 billion rubles will be allocated as preferential loans for three-year terms.
|
09.09.10
English