
13.11.07

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Welcome from Alinga!
The big news this month is Russia's sweeping business visa reforms. This issue of the Alinga Market Update focuses on those reforms - and brings an article on how these reforms may specifically affect Russia's markets for educational services. You'll also find news on recent tax reforms and legal issues. Keep an eye out for next month's special year-end issue, which will feature full articles clearly explaining Russia's VAT and other potentially confusing taxation and legal issues affecting international business in Russia.
Feel free to forward these articles to your boss, your accountant, your lawyers, or anyone else you think might be interested by using the new "Mail this page" feature at the bottom of each page.
If you have comments, questions, or suggestions on other ways we can improve our site and newsletter, please contact the editor at jwilson@acg.ru! To subscribe to this newsletter, send an email with "Subscribe Alinga" in the subject field to jwilson@acg.ru.

Notify Your Accountants!
There is much more "Accounting and Payroll" information available in the Russian version of this same newsletter!

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!
Electronic Reports Can Minimize Unified Tax
Companies utilizing the simplified tax system for their "profits minus expenses" base may deduct the cost of sending documentation via communication channels as communication services expenses.
Bonds Yields Taxable
Tax authorities have announced new taxes on interest earned on Russian bonds purchased by foreign organizations in the Russian Federation and that the interest should be included in calculation of the profit tax base for that organization.
Transport Tax Will Be Increased By 2009
Rumors of a city transport tax being increased 150% by 2008 stirred up a storm of emotions among Moscow’s three million car owners. However, last week the tax raise was postponed.
Leasing Space To Foreign Citizens Or Organizations
The Ministry of Finance has updated a law that allows the leasing of premises in Russia to foreign citizens or foreign organizations accredited in Russia to be tax exempt on the basis of international agreements.

Paperwork Increased For Legal Entities Opening Bank Accounts
The Central Bank of the Russian Federation has hardened regulations for foreign legal entities opening bank accounts and who do not pay Russian taxes (excluding foreign credit institutions).
Absent Director = Fraudulent Company?
When tax inspectors arrived at the address stated in the company's documents and didn't find anyone, they concluded the company was fraudulent.
Damages Awarded by Foreign Courts Can Be Paid By Russian Branches
It is now believed that the rulings of foreign courts regarding companies abroad which hold property in Russia will now be executable in Russia.
Foreign Holdings To Be Barred From Providing Security Services
The draft completely bans the use of foreign capital from security services, with an exception made for cases based on intergovernmental agreements.

Find Job Vacancies Here Find Employees Here
Quotas For Immigrant Workers Increased
The highest quotas have been assigned to Moscow, Saint-Petersburg, the Republic of Tatarstan, the Krasnodar Territory, the Krasnoyarsk Territory, the Sverdlovsk Region, the Nizhni Novgorod Region, the Chita Region, the Khabarovsk Territory and the Sakhalin Islands.
Outstaffing Receives "Green Light"
The company transferred 44 employees to a newly founded enterprise, while work functions and location for these employees remained the same. Tax authorities perceived it as a "concealment of salaries." Courts decided otherwise.
Two-Level System Of Higher Education Signed Into Law
The new law establishes two levels of higher professional education – with bachelor and master programs, while keeping Russia's old "specialist training" program.
Moscow’s Mayor Thinks Businesses Should Pay For Migration Quotas
According to Moscow's Mayor Yuri Luzhkov, "use of quotas for immigrant labor employment must become a paid service." Inferring that companies should essentially pay an additional fee to use immigrant labor.

AmCham Meeting on the New Visa Regulations
The printed minutes of the last meeting held by AmCham are considered to be (at least for now) the last word on the complicated and confusing new regulations on multi-entry visas. We strongly recommend that all foreigners in Moscow read them carefully. Our own short notes on the major changes can be read here.
Old Residency Permits Now Invalid
The Federal Migration Service confirmed on Tuesday that foreigners with old residency permits were being barred from leaving the country under newly enforced regulations.
Streamlined American Oveseas Voting Proposed
Right now, far too many overseas Americans – including many of the brave men and women serving in our military – are being disenfranchised by a tangle of bureaucratic red tape.

Russia's Educational Services Markets and the Impact of New Visa Regulations
This analytical article (in English, from The School of Russian and Asian Studies) explores the possible effects Russia's sweeping visa reforms will have on Russia's foreigner-heavy educational markets. While the impact for free-lancers in the short term will be devastating, the long term effects on the market will likely be beneficial.
What Will Russia's Elections Mean for International Relations?
This is the subject of the latest newsletter by The School of Russian and Asian Studies. Click to find articles, video footage, and streaming audio on topics ranging from US-Russia Relations, the current status of the Caspian Sea oil interests, and the latest developments in Georgia, and more!
Have questions on any issue above? Ask the Expert!
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