Alinga Consulting Group
Business Support & Consulting
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001
VAT Applicable To Videoconferencing Services Rendered By Russian Organizations To Foreign Organizations
Russia's Ministry of Finance has stated that, if videoconferencing services are provided by a Russian organization to a foreign organization, for tax purposes, the service is recognized as provided within the territory of the Russian Federation. Thus, VAT is to be charged for such services.
To replace the concept of "unreasonable tax benefits," a tax law standard has been introduced that restricts the rights of taxpayers to reduce taxes and tax bases.
What's coming up for business in Russia?
According to the World Bank, Russia now is considered the 35th easiest country (out of 190 countries) to do business in the world.
The agreement was signed on September 7, 2017, and covers, for example, taxation of income from fixed assets, profits from business activities, profits from sea and air transportation, dividends, income from copyright and licenses, as well as personal income.
Under the new rule, the maximum period for voluntary liquidations is one year. The participants in the company or decision making body that made the decision on liquidation will determine the period within that limit. It can be extended by court ruling, but not by more than six months.
Some foreigners in Russia have adopted a system that circumvents current migration regulations.
Companies are now obliged to provide any available documented information about their beneficial owners or on measures taken to establish information on their beneficial owners when requested by the Tax Authorities or by the Federal Financial Monitoring Service.
Individual organizations may name individual dates for the beginning and end of the reporting year for the preparation of consolidated financial statements. This is allowed provided that the reporting year's duration is equal to the duration of the calendar year, except for cases when other federal laws stipulate that the reporting period for annual consolidated financial statements is a calendar year and/or such reporting is included in an organization’s annual report.
Russia is planning a new system for collecting, storing, and processing data used on the Internet. The new project is meant to strengthen regulations over the Internet in Russia, the project developers report.
The Russian government approved a bill on introducing a tax on excess profits (EPT), Russian Energy Minister Alexander Novak told news agency TASS said on the sidelines of the Eastern Economic Forum.
The Ministry of Finance of the Russian Federation last year brought 6,000 companies back from offshore locations. As a result, the budget received 3 billion rubles in additional taxes. Alexei Sazanov, The Director of the Tax and Customs Policy for the Ministry of Finance was quoted as saying this in a recent Izvestia article.
The SPIBA Snapshot provides an overview of business performance in 2016 and provides insight into company expectations in St. Petersburg & Leningrad Oblast for 2017. Survey results were collected from 36 respondents among 10 industries.
Foreign organizations rendering services in electronic form to individuals in Russia are obliged to register with Russia's tax authorities if those services are not provided through a rep company in Russia.
Taxes paid by a Russian organization to a foreign government can be used as tax deductions in Russia if the income from which the tax was withheld is also included in the organization's tax base in Russia. The company must also show that the taxes were paid to a foreign government.
Passed in its first reading, a new bill proposes giving firms the right not to apply a tax rate of 0 per cent on exports. When exporting, a 0 percent rate currently applies. You might ask: Who will voluntarily renounce such a privilege?
Part 1 of Article 12 of the Federal Law No. 173-FZ of December 10, 2003 "On Currency Regulation and Currency Control" establishes the right of residents to open unrestricted accounts (deposit accounts) in foreign currency and the currency of the Russian Federation with banks located outside the territory of the Russian Federation.
However, the concepts of "tax resident" and "resident" for the purposes of applying the Federal Law "On Currency Control" are not the same.
Electronic extracts from the register of accredited branches, representative offices of foreign legal entities will be available free of charge in Russia. The law on this is officially published.
The prohibition to sign labor and civil law contracts with Turkish citizens was effective from January of last year. It concerned employers and those using contractors who had not signed contracts before that date.
After almost two years of recession, Russia has entered a path to recovery. With global growth and trade starting to strengthen at the end of 2016, Russia’s economy showed signs of overcoming the recession caused by the shocks of low oil prices and economic sanctions.
Russia is heading toward a moderate growth rate over the 2017-to-2019 period (between 1.3% and 1.4%), supported by rising oil prices and macroeconomic stability.
Starting from July 1, 2017 Federal Tax Service Will Provide Expanded Information on Taxpayers on Its Website
In accordance with the latest tax legislation amendments the Federal Tax Service will provide additional information (except the information that constitutes tax secret) on the taxpayers on its website as open source data. In particular, the list of open source data will include the information on the number of the company’s employees, the company’s profits and losses, the taxes and duties paid and the tax arrears, unpaid tax penalties and fines.
The Russian President has issued a decree tightening security measures in Russia for the duration of the FIFA 2017 Confederations Cup and FIFA 2018 World Cup. This decree requires all foreign citizens arriving in Russia during the championships to register at the place of their stay within one day of their arrival. These new rules will be effective during the following periods:
From June 01, 2017 to July 12, 2017
Russia's Federal Customs Service (FCS) has issued a statement that electronic bank guarantees may be used in foreign transactions. The bank guarantee does not need to be sent to customs by the business. The bank itself will send the notice. In addition, there is no need to submit to customs confirmation of the issuance of a guarantee. The electronic bank guarantee must be signed by a qualified electronic signature of the authorized person.
The Ministry of Internal Affairs of Russia on its website, which publishes legislative initiatives, has posted a new bill that affects the rules of stay for foreigners in Russia, as well as regulation of their employment in Russian companies, and how the Ministry of Internal Affairs will verify compliance from these organizations.
The government decided not to attempt its much-discussed "22/22 maneuver." This was to include raising VAT to 22% and reducing insurance premiums to 22%. Reforms will be remain on the government's agenda. As the newspaper Vedomosti writes with reference to its sources, the decision to postpone reforms was made on April 12 at a meeting with Prime Minister Dmitry Medvedev.
If a Russian company carries out joint activities in Russia with another company (or companies) – whether they are Russian or foreign - the parties must conclude a simple partnership agreement.
The role of the simple partnership in the business world, in our opinion, is underestimated. When entering the Russian market, most foreign companies open a Russian subsidiary LLC or register a representative office (branch). However, a simple partnership offers the same business opportunities as an independent legal entity, and even has advantages in terms of administration (opening and closing the activities).
The Customs Code of the Eurasian Economic Union (annex No. 1 to the Agreement on the Customs Code of the Eurasian Economic Union) was adopted originally in Moscow on November 04, 2014. It is aimed at ensuring uniform customs regulation within the territory of the Union.
Filing Cash Flow Statements Involving Foreign Bank Accounts When The Organization Has Been Merged With Another Legal Entity
Russia's Federal Tax Service has specified that if one organization is merged with another legal entity, obligations to file cash flow statements involving bank accounts held outside the territory of the Russian Federation lie with the successor organization.
Russian Interior Minister Vladimir Kolokoltsev recently issued an order to eliminate migration queues and reduce the time for rendering migration services to just 15 minutes. The order is to be implemented in the near future.
Russia's Ministry of Labor explained that Russia's current labor legislation does not provide for labor contracts to be signed with off-site employees who will reside abroad. It does not matter if the employee is a Russian citizen, a foreign citizen, or a stateless person.
If a foreign organization, which is not registered with the Russian tax authorities, acquires property in Russia and transfers it (without changing the share capital) to its Russian subsidiary, the transaction is applicable to VAT taxation.
Russia’s Ministry of Finance explained that, in the event a foreign buyer assigns the right to claim goods to a Russian person, funds received by a Russian seller from a foreign buyer in consideration for the future sale of goods are subject to inclusion in the VAT tax base in the tax period in which they are received.
Russia has joined the Paris Agreement which is developing a framework for implementing Point 13 of the BEPS Plan (on transfer pricing documentation and country reporting).
A relatively new requirement, established by Law #173ФЗ, states that residents must ensure receipt of revenues from foreign trade contracts to their bank accounts. The law provides for a transaction report form to be issued for this in the currency of the Russian Federation in a share determined by the Government of the Russian Federation.
If a Russian company subleases property from a foreign organization, a tax agent is obliged to calculate and pay the appropriate amount of VAT. Under the provisions of the Tax Code, the place of implementation of services for renting of immovable property is determined based on the location of the property.
The place of supply of travel services provided by a foreign company to a Russian organization, is not recognized as being inside the Russian Federation. Accordingly, such services are not subject to VAT in Russia.
A new law gives arbitration courts the right to refuse cases. Reasons the arbitration courts can claim for doing so include lack of jurisdiction, if the case has already been tried and awarded, or if the case is being heard in another court. The related bill has passed its third reading. Before, courts of arbitration could only end hearings after accepting cases. Now, the process is expedited. Under the new rules, the court decision and other documents will be sent to the applicant not later than five days from the date the claim is received by the court.
A reduction is planned in maximum fine (from 70,000 to 50,000 rubles) faced by Russian importers and exporters that have not submitted to the customs statistics forms for trade with member countries of the Eurasian Customs Union. The amendments also relate to those who have filed the reports late or with incorrect wrong data. The related bill has passed third reading.