In this month's Market Update, you'll find many articles to explain recent developments in taxation, audit, legal, and accounting in Russia. Let us know if you have any questions. You can now watch fragments of Alinga's popular webinars on its growing YouTube channel (in Russian).
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Rich Russians Start Family Offices as Heirs Lie in Wait
Russia’s wealthiest have held an iron grip on their assets since the Soviet Union’s collapse, defending their fortunes from rivals or bureaucrats. Now they face pressure to cede some control as they prepare for a transfer to the next generation and executives running their businesses push them to professionalize the management of their wealth.
Four Ways for Foreign Business to Work in Russia
There are four ways to make your foreign business functional in Russia. Those are opening a Russian legal entity, buying a stake in an already-operating Russian enterprise, opening a branch/rep office of a foreign legal entity or working with distributors. Let's look at each of those in details.
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!
Russia Takes Another Step Towards “Disclosing” Beneficial Owners?
Russian and foreign tax authorities start exchanging information automatically in line with the Multilateral Competent Authority Agreement this month.
Accounting For Legal Awards Abroad In Favor Of Russian Organizations
Damages awarded by a foreign court in favor of a Russian organization are subject to inclusion as non-operating income for tax purposes in Russia. The amounts should be recorded in the period when the court decision enters into force. This is according to Letter No. SD-4-3 / 16391 @ of 24.08.2018 from the Russian Federal Tax Service.
EB-5: The Best USA Immigration Option for Russian Nationals & Expats In Russia and the CIS
Relocating to the U.S. and becoming a lawful permanent resident and perhaps eventually a citizen can be a complicated and difficult process for the Russian individual or family. Many Russians hoping to immigrate to the U.S. are faced with lengthy delays and wait times only to discover their visa applications have been denied for seemingly minor mistakes.
Summary of Changes to Migration Law Now in Effect
On June 27, 2018, the Russian president signed a new federal law that clarifies what "registration" is, as well as describes what can be considered "a place of residence," as well as what legal basis a foreigner can be registered in Russia.
Inviting Organizations and Individuals Must Ensure that Invited Foreigners Observe Russian Migration Law
The organization or individual who invites a foreign citizen to Russia is now obligated to make sure that that foreigner observes the migration law of the Russian Federation. In particular, the foreigner's activities in Russia must be compliant with the declared purpose of the visa. In addition, the inviting party should ensure the timely departure of the foreigner before the expiration of his or her visa. This is according to Federal Law No. 216-FZ of 19.07.2018 "On Amendments to Article 16 of the Federal Law" On the Legal Status of Foreign Citizens in the Russian Federation."
Rare 300-Year-Old 'Beard Tax' Coin Discovered in Russia
n 1698, Tsar Peter the Great of Russia, as he would come to be know, was waging a war on beards. In an attempt to modernize his empire and make it more like the west after spending years exploring Europe in disguise, Peter instituted a tax on facial hair. You could avoid it by shaving, but if you opted to pay the tax, you would receive a token to verify your beard as legal, and an especially rare version of one of these tokens has recently been found.
Russia's Controversial Nord Stream 2 Pipeline May Now Be Unstoppable
On the afternoon of September 5th 2018, a ship called Solitaire in the Gulf of Finland started laying the first deep water pipes for the controversial Nord Stream 2 project – a strong signal that the new pipeline from Russia to Germany is now unstoppable.