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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New Tax For The Self-Employed In 4 Russian Regions
Self-employed individuals and entrepreneurs operating in the territory of Moscow, the Moscow Region, the Kaluga Region, and the Republic of Tatarstan will likely be able to voluntarily switch to a new tax regime called “Tax on Professional Income.” The corresponding bill was approved by the State Duma in the first reading at the plenary session on October 25.
How To Apply VAT On Electronic Services Rendered By Foreign Companies During The Tax Transition Period From 2018-2019
VAT increases from 18 to 20 percent from January 1, 2019 (see the Law of 03.03.2018 No. 303-FZ) affects VAT for electronic services rendered by foreign companies. The specifics of its calculation were disclosed by the Federal Tax Service in a letter dated October 23, 2018 No. SD-4-3/20667.
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!
"Fictitious" Migration Registration Further Defined
"Fictitious" registration is now defined as both registering a foreigner at a non-residential premises as well to an address for an organization at which the foreigner does work. The previous version of the law mentioned only that the foreigner must be registered in a residential premises.
No VAT To Be Applied To International Telecommunication, Database Services Provided By Foreign Organizations
In its Letter No. 03-07-08 / 62285 of August 31, 2018, the RF Ministry of Finance confirmed that the Russian organization is not recognized as a tax agent for VAT, and therefore should not withhold tax from the amount of remuneration for the provision of international telecommunication services by a foreign organization or for the provision of databases via the Internet on the basis of a license agreement.
Putin Signs New State Migration Policy
October 31, 2018 Russian President Vladimir Putin approved the Concept of the State Migration Policy of the Russian Federation for 2019-2025. He announced this at the World Congress of Compatriots in Moscow.
New Forms for De-registration from the Migration Register
From August 10, 2018, the receiving party (host) is obliged to notify the Ministry of Internal Affairs of the departure of any foreign citizens from their place of residence by submitting a notification (in a prescribed form) about the departure and thus cancel the migration registration at the address in question."
Where Is Russia’s Amazon?
In most countries, e-commerce is dominated by one or two behemoths, such as Amazon in the U.S. and Britain, Alibaba in China, and MercadoLibre in Brazil. In Russia, where the largest web store has less than 7 percent of the market, at least a half-dozen companies are in the running to become the king of online shopping.
86% of Large Russian Companies Fear New U.S. Sanctions
Almost nine out of 10 large Russian companies say they are wary of looming U.S. sanctions, according to a new survey conducted by a private consulting firm.