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About Alinga | |
 14.12.08
Welcome from Alinga! In a recent CIA/NIS report projecting the future of geopolitics, the authors seem most uncertain about Russia. They write that if Russia used its oil wealth to diversify its economy and invest in its population, it would continue to grow in power. Most Russia watchers have long agreed on this – disagreeing only on if Russia's diversification and investment was being implemented rapidly enough. Now, with oil prices plummeting and the global economy in crisis, nearly everyone can agree that Russia is now facing some serious economic challenges which will affect its domestic and foreign agendas.
As the articles below indicate, the effects of the changing world economic environment can already be seen in Moscow. Jobs are being cut, businesses are slashing expenditures, and the government is trying to react as quickly as events unfold. Alinga Consulting and the Alinga Market Update are both geared to help you deal with these changes and challenges effectively and legally. Whether you need to trim personnel costs through lay offs or slash costs by outsourcing your accounting and payroll (contact us for more info), we hope you'll find this information and our services of help as we all seek ways to weather what looks to be a long and eventful storm ahead.
Keep an eye out next week for our next quarterly analytical issue - this time focusing on foreigners investing and working in Russia.
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.
Alinga Consulting Group Holds Insightful Panel On Russian Business A business breakfast panel discussion organized by Alinga Consulting Group recently took a look at how 1998 compares with the 2008. Find out more and download the presentations here!
Alinga Market Update Now In Print! Alinga announces its first print edition of the Alinga Market Update! If you have not already received a free copy from us, write to us at jwilson@acg.ru. The first 100 requests will receive a free subscription mailed to anywhere within the Russian Federation. Our first print edition dealt with Real Estate in Russia. Our next edition will look at Foreigners in Russia, examining the obligations and rights of foreign individuals, organizations, and businesses operating or working within Russia.
Official Days Off In Russia For 2009 Official days off announced for 2009. We included a quick reference guide for the holidays with days off marked.
In times of economic hardship, a company tries to minimize its expenses, including payroll.
The Compensation For The Use of Personal Vehicles For Business Purposes Compensation paid for the use of personal transport for business trips is calculated as part of profit tax rather than as employee compensation.
The issue of fair wages worries many, especially tax officials who are fighting "grey wage schemes" whereby an employee is paid some or most of his salary under the table.
There is much more "Accounting and Payroll" information available in the Russian version of this same newsletter!
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!
The profit tax will lower from 24 percent to 20 percent starting from 2009 in Russia, i.e. the companies will have roughly 400 billion ruble in addition at their disposal.
State Duma Approves Amendments To Tax Code Legislators of Russia's State Duma approved several amendments to the Tax Code in their second and third readings. The changes are designed to improve procedures for calculation and administration of VAT.
Debt for services in the case of liquidation of the debtor is considered uncollectible for the purposes of taxation.
Paying Taxes is a unique annual report from PwC and the World Bank, which facilitates the direct comparison of tax systems in 178 countries worldwide, and ranks each country according to the relative ease of paying taxes.
Tax Authorities Battle Crisis With "Situational Centers" Inspections of companies avoiding taxes during the financial crisis will be handled by "situational centers" created within the central office of the Federal Tax Service and in all its regional departments.
Inspectors Cannot Demand Every Document Tax officers ask tax payers for all sorts of primary documents during field audits. Few taxpayers contest such requirements. But often such requests are illegal.
Federal Tax Service Challenges Companies Absent On The Internet The FTS continues offering guidelines to help businessmen avoid entering into business relationship with "shady" companies.
Minimum Wage Will Continue To Be Taxed The State Duma decided not to support a proposed bill that would exempt those earning minimum wage from personal income tax.
The final tax status of the individual is determined on the basis of the final tax period (calendar year) and can not change depending on the time the individual is in Russia in the next fiscal period.
Making sales on the eve of a holiday is a good way to attract new customers and retain old ones. However, this can actually pose tax risks to both buyer and seller if the sale takes place between businesses.
The introduction of amendments to Russia's Constitution - the first ever since its adoption in 1993 - heralded the beginning of President Dmitry Medvedev-proposed political reform. Experts believe, though, that it was drafted back during Vladimir Putin's presidency.
Federal Antimonopoly Service will not regulate the majority of medium-sized businesses and officials will be dismissed for attempts to limit competition.
Russian Duma Considers Banning Police From Inspecting Small Businesses Amendments limiting the police's right to search an enterprise's premises or to confiscate documents from an enterprise, were introduced following statements by President Dmitry Medvedev and passed their first reading by the State Duma in September.
Surprisingly Liberal Amendments To The Law On The Media By spring of 2009, Russia may have a new edition of the law on the media. The Duma is working on this new legislation already.
Amendments To Bankruptcy Law May Allow Settlements State Duma's Committee on Ownership approved a set of amendments to the Bankruptcy Law.
The Supreme Arbitration Court of Russia dismissed the lawsuit brought about by several St. Petersburg companies and recognized the right of Japanese companies to the domain name.
State Duma Restricts Powers Of Private Security Structures The State Duma has passed a bill at second reading that tightens control over the activities of private security structures and hardens requirements to private security enterprises and private detective agencies.
Medvedev, Bush To Launch Joint Anti-Piracy Initiative Russian Foreign Minister Sergei Lavrov said that Russia and the United States would launch a joint initiative on how to fight against piracy.
Personal Income Tax Reform To Boost Stock Investment The Ministry of Finance wants to introduce additional income tax incentives for investing in securities starting in 2010.
Find Job Vacancies Here Find Employees Here
Vacancies And Appointments Hit An 11-year Low A report by the Recruitment and Employment Confederation and financial services firm KPMG found permanent and temporary staff appointments are at their weakest level since the start of the survey in October 1997.
94% Of Companies Polled Will Cut Staff In response to the crisis, 94% of companies polled will reduce or freeze costs for HR, training, corporate events, recruitment, and travel.
Salaries Falling Sharply In Moscow Salaries have been falling in Moscow since September.
698 Moscow Businesses Reduce Staff As of the fourteenth of November, 698 businesses in Moscow have filed government-required declarations stating that they would be enacting layoffs.
Why Poor Performers Don't Get Fired Almost everyone has had the experience of working alongside someone who is a chronically poor performer -- and then puzzling over the question of why nothing is being done about it.
Employee May Hold Unlimited Number Of Jobs Many directors discourage employees from working in another company. However, such clauses are illegal.
Foreign Household Help To Be Licensed A draft law is being prepared in the Federation Council to legalize foreign workers employed domestically.
There is much more HR information available in the Russian version of this same newsletter!
Review of Russian Economic News in English This review is produced monthly by The School of Russian and Asian Studies, the US-Russia Chamber of Commerce of New England (USRCCNE), and Alinga Consulting Group.
Alinga partner company, The School of Russian and Asian Studies, has produced a number of news reviews this month on the aftermath of the South Ossetia conflict, domestic politics and foreign relations, Russian military reform, and more.
Global Trends 2025 (PDF, 33.4 MB) This latest report from the NIC and the CIA examines what changes the next decades may bring to global politics and economics. They predict a much stronger position for Russia in both fields.
Russian Constitution Author Sergey Shakhray On Medvedev's Amendment Proposals Sergey Shakhray, one of the author's of Russia's Basic Law, talked about the spirit of the Russian Constitution and about how the four-year presidential term came about.
Prime Minister Vladimir Putin has approved an action plan listing 55 measures for helping the Russian economy overcome the consequences of the global financial crisis. Its maximal objective is to get the real sector and the financial sector back on their feet within five months.
RF Adopts Measures To Minimize Effects Of World Financial Crisis Russia has adopted quite a large set of comprehensive measures to minimize the consequences of the world financial crisis for the country, Viktor Khristenko, the Russian minister of industry and trade.
Nabiullina Says Economic Model Shot The economy model under which Russia has developed for the last several years has been exhausted, Minister of Economic Development Elvira Nabiullina has declared.
Can The State Save The Economy By Nationalizing Problem Enterprises? Specialists predict that dozens of Russian enterprises could be nationalized. On the one hand, this would save them from bankruptcy. On the other hand, the state has never shown itself to be a good property owner or an effective manager.
M&A Deals Falling Like Dominoes Volume of cancelled transactions since October nearly equals deals done during that period.
Russia To Adopt Food Security Concept Russia will adopt the Food Security Concept till this year-end, according to Agriculture Minister Alexei Gordeev.
Russian Regions Slash Bureaucracy Russian regions are cutting down on bureaucracy to use the money thus saved to support the economy and social programs.
Have questions on any issue above? Ask the Expert! More about services from Alinga Consulting Group
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Review Of Recent Changes To Tax-Related Legislation In The Russian Federation
Duma Amends Constitution, Paves Way For Medvedev-Putin Reforms
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