17.05.2024

LIST OF CASES TO USING ‘S’ TYPE ACCOUNTS HAS BEEN EXPANDED

The rules for using ‘S’ type accounts for settlements and transactions have been adjusted.

The transfer to residents of funds in the amount of payments on securities previously credited to their ‘S’ type accounts is settled for the following cases:

- after March 1, 2022, foreign creditors were not owners of the securities for which payments were credited;

- after March 1, 2022, transactions with securities were carried out under permits provided for by presidential decrees.

16.05.2024

OFFSHORE COMPANIES FOR TAX PURPOSES - A SPECIAL LIST HAS BEEN APPROVED

The Russian Ministry of Finance has approved a Special List of states and territories that provide preferential tax treatment and (or) do not provide for the disclosure and provision of information when conducting financial transactions (offshore zones). The special list of offshore zones includes 40 countries.

It applies to tax periods 2024-2026 for income tax and personal income tax for the purposes of exemption from taxation of CFC profits, determining the tax base for income tax and applying tax rates for income tax.

15.05.2024

HOSTING PROVIDERS DO NOT NEED A LICENCE TO PROVIDE COMMUNICATION SERVICES

The activities of hosting providers do not require obtaining a licence to provide communication services.

A hosting provider is a person who provides services to provide computing power for placing information in an information system that is permanently connected to the Internet. These services are not communication services.

14.05.2024

LIST OF TAXPAYERS ENTITLED TO ENTER INTO PRICING AGREEMENTS HAS BEEN EXPANDED

The rules for concluding a pricing agreement for tax purposes in relation to a foreign trade transaction have been adjusted.

A taxpayer who is a party to transactions that are recognised as controlled and the subject of which are goods included in one or more commodity sections, and the amount of income (expenses) for which is at least two billion roubles per calendar year, can now apply to the Federal Tax Service with an application for the conclusion of such an agreement.

13.05.2024

QUOTAS FOR THE EXPORT OF MINERAL FERTILIZERS HAVE BEEN EXTENDED

It was decided to extend non-tariff quotas for the export of mineral fertilizers from Russia outside the EAEU. They will be valid from June 1 to November 30, 2024 inclusive.

The total export quota is 19.7 million tons. The Ministry of Industry and Trade will distribute it among exporters. Quotas do not apply to the supply of fertilizers to Abkhazia and South Ossetia.

10.05.2024

BANK OF RUSSIA LEFT THE KEY RATE AT 16% PER ANNUM

On April 26, 2024, the Bank of Russia decided to maintain the key rate at 16% per annum.

The return of inflation to target in 2024 and its further stabilisation around 4% suggests a longer period of maintaining tight monetary conditions of the economy. According to the Bank of Russia's forecast, annual inflation will drop to 4.3 - 4.8% in 2024 and return to 4% in 2025.

09.05.2024

REQUIREMENT FOR MANDATORY REPATRIATION OF FOREIGN CURRENCY AND SALE OF FOREIGN CURRENCY PROCEEDS HAS BEEN EXTENDED

The requirement for the mandatory repatriation of foreign currency and the sale of foreign currency earnings under foreign trade contracts for certain major Russian exporters has been extended until April 30, 2025.

At the same time, the period for exporters to credit foreign currency earnings to their accounts has been increased from 90 to 120 days (from the date of transfer of goods to non-residents, performance of work for them and provision of services in accordance with foreign trade contracts).

08.05.2024

MINIMUM PERIOD FOR KEEPING COMPANY DATA IN THE PUBLIC DOMAIN HAS BEEN REDUCED

The Tax Code of the Russian Federation provides for posting some information on the company that is not recognised as tax secrets in the form of open data on the official website of the Federal Tax Service, if such information does not relate to state secrets.

Such information shall be posted on the Service’s website within certain periods and is publicly available for at least a year.

From May 19, 2024, this period to be reduced to one month.

07.05.2024

AMENDMENTS TO THE TAX CODE: SPECIAL STAMPS ON TOBACCO, EXCISE TAXES ON WINE, MINERAL EXTRACTION TAX ON THE EXTRACTION OF SEMI-PRODUCTS WITH PRECIOUS METALS

There is a transition to payment of excise tax on tobacco based on data from the state information monitoring system. Registration and control special marks are being introduced for application to the packaging of tobacco and excisable nicotine-containing products. They will replace excise stamps.

In order to support domestic winemaking, from May 1, 2024, excise tax rates on Russian wines will be reduced: fortified (liqueur) wine, fortified wine in bulk, sparkling wines, including Russian champagne. Manufacturers of fortified (liquor) wines and wine materials are exempt from paying advance excise taxes.

A coefficient is provided that increases the amount of mineral extraction tax for the extraction of semi-products containing one or more precious metals (gold, silver, platinum, palladium, iridium, rhodium, ruthenium, osmium) for the tax period, the beginning of which falls on the period from June 1 to December 31 2024 inclusive.

06.05.2024

PAYMENT PROCESSORS CAN BE REGISTERED WITH THE FEDERAL FINANCIAL MONITORING SERVICE ONLY AFTER BEING INCLUDED IN THE REGISTER OF THE BANK OF RUSSIA

From October 1, 2023 to October 1, 2025, the Federal Financial Monitoring Service will register payment processors in the procedure prescribed by the law on combating money laundering and the financing of terrorism, provided that information about them is entered into a special register by the Bank of Russia. If the payment processor plans to register with the Federal Financial Monitoring Service, then the necessary documents for this need to be sent only after entering the information into the register.

Companies that worked as payment processors before October 1, 2023 are required to enter information about themselves into the register of payment processors before October 1, 2024. After this date, in the absence of information in the register, the activity of accepting payments as a payment processor is prohibited.

03.05.2024

TIME LIMITS HAVE BEEN ESTABLISHED FOR THE FORCED CONVERSION OF SECURITIES OF FOREIGN ISSUERS INTO SHARES OF AN INTERNATIONAL COMPANY

Previously, it was decided to create international companies in special administrative regions by way of incorporation. This will help speed up the transfer to Russia of foreign assets of companies that are currently hampered by sanctions.

In this regard, the Board of Directors of the Bank of Russia established the procedure and terms for the forced conversion of securities of foreign issuers certifying rights in relation to shares of joint stock companies with the status of an international company into shares of such joint stock companies.

02.05.2024

PBU 4/99 ‘ACCOUNTING STATEMENTS OF A COMPANY’ TO BECOME INVALID FROM JANUARY 1, 2025

From January 1, 2025, the Order of the RF Ministry of Finance approving PBU 4/99 becomes invalid.

This is due to the approval of a new accounting standard “Accounting (financial) reporting” (FAS 4/2023).

As the Russian Ministry of Finance has already explained, companies must apply FAS 4/2023 starting with the financial statements for 2025. No pre-schedule application provided for this standard. Starting from reporting for 2025, PBU 4/99 and Order No. 66n are not subject to application, and the provisions of other regulations on accounting reporting should apply to the extent that does not contradict the new FAS 4/2023.

01.05.2024

WORLD FRIENDSHIP GAMES IN RUSSIA - THE PROCEDURE FOR HOLDING THE GAMES NOW AT THE LEGISLATIVE LEVEL

The World Friendship Games are a new format of international sports competition that supports the principle of universal accessibility of sports and the absence of discrimination against any group of athletes.

The following is now provided in legislation:

- the powers of the IFA - International Friendship Association, organiser, and organizing committee;

- the specifics of advertising and trading during the World Friendship Games;

- the rules for the use of the radio frequency spectrum;

- transport issues have been settled;

- the procedure for selling entrance tickets;

The Unified Gambling Regulator will transfer targeted deductions from bets and wagers to the organiser of the World Friendship Games in the amount of 25%.

30.04.2024

PROCEDURE FOR OBTAINING A TEMPORARY DOCUMENT FOR RETURNING TO RUSSIA HAS BEEN ESTABLISHED

A procedure has been established for the issuance of a temporary personal identification document giving the right to entry (return) to Russia by diplomatic missions or consulates of Russia or representative offices of the Ministry of Foreign Affairs in the border area. The form of this document is indicated. It is issued in the form of a certificate. To receive it, the application and documents must be submitted in person.

29.04.2024

MINISTRY OF DIGITAL DEVELOPMENT INFORMS ABOUT THE POSSIBILITY OF OBTAINING A CERTIFICATE OF AN ENCRYPTED AND CERTIFIED DIGITAL SIGNATURE USING THE GOSKLYUCH MOBILE APPLICATION THROUGH FACE-TO-FACE IDENTIFICATION

Previously, it was possible to confirm your identity in order to receive a certificate of an encrypted and certified digital signature using Gosklyuch only remotely - using a new international passport or confirmed biometrics. Now you can do it in person, at the Multifunctional Public Services Centre or branches of partner banks. The Ministry of Digital Development informed about this last week.

Also the department reminded what services can be obtained using an encrypted and certified digital signature or an encrypted and non-certified digital signature using the Gosklyuch mobile application.

26.04.2024

THE PROHIBITION ON FORECLOSURE, SEIZURE AND APPLICATION OF OTHER INTERIM MEASURES IN RELATION TO ASSETS IN S-TYPE AND I-TYPE ACCOUNTS HAS BEEN CLARIFIED

From January 3, Decrees of the President of the Russian Federation No. 95 of March 5, 2022 and No. 665 of September 9, 2023 were supplemented with provisions establishing that

collection under executive documents cannot be applied to funds and securities accounted for in S-type accounts, as well as for funds held in I-type accounts, or arrest has not been imposed or other interim measures cannot be taken in relation to them.

25.04.2024

THE GOVERNMENT COMMISSION ON FOREIGN INVESTMENTS WILL MAKE RECOMMENDATIONS ON TRANSACTIONS WITH FOREIGN SHARES IN RUSSIAN COMPANIES

The rules for issuing permits have been adjusted in order to implement additional temporary economic measures to ensure financial stability. They are issued by the Government Commission for the Control over Foreign Investments.

It has been established that the commission will consider the feasibility of transactions with foreign shares in Russian companies. This means that transactions in the financial and fuel and energy sectors, which are prohibited and which can be carried out on the basis of a special decision of the President (in particular, the withdrawal of large foreign investors from mining and energy projects).

24.04.2024

SUBMITTING INFORMATION ON BANS ON FINANCIAL TRANSACTIONS AND BLOCKED PERSONS: BANK OF RUSSIA HAS DETERMINED THE RULES

The Bank of Russia has prepared the rules for for supervised organisations for electronic generation of information provided for by the Law on Special Economic Measures. This concerns information on blocked persons, information on the measures taken to freeze (block) funds or other property, and on prohibitions (restrictions) with respect to financial transactions.

23.04.2024

FOR SAR RESIDENTS, A PROCEDURE IS ESTABLISHED FOR EXTENDING THE DEADLINE FOR LEAVING A FOREIGN REGISTER

Government has approved the procedure for making a decision on extending the deadline for leaving the register of foreign legal entities for companies that are residents of Russian special administrative regions (SAR). Such decisions to be made by the Governmental commission for supervision over foreign investment.

In particular, SAR residents with a status of international companies will be able to send an application to the Ministry of Economic Development no earlier than two months before the expiration of the established period. A list of documents to be attached to such application is also determined.

22.04.2024

FROM JANUARY 1, 2025, PBU 4/99 ‘ACCOUNTING STATEMENTS OF AN ORGANISATION’ BECOMES INVALID

From January 1, 2025, PBU 4/99 ‘Accounting statements of an organisation’ will no longer be in force. It will be replaced with FSBU 4/2023 ‘Accounting (financial) reporting’.

19.04.2024

BAN ON FORECLOSURE, SEIZURE AND APPLICATION OF OTHER INTERIM MEASURES IN RELATION TO ASSETS IN S-TYPE OR I-TYPE ACCOUNTS HAS BEEN CLARIFIED

From January 3, funds and securities accounted for in S-type accounts, as well as for funds held in I-type accounts, cannot be levied under enforcement documents, and arrest cannot be imposed in relation to them. no other interim measures can be taken.

From April 8, 2024, these provisions are set out in a new wording. They specify that:

- a demand for the collection of mandatory payments in respect of assets in S-type or I-type accounts cannot also be made;

- a ban on foreclosure, seizure, filing a claim for the collection of obligatory payments, the use of other interim measures is applied if the relevant judicial acts and acts of other authorities are issued after January 3, 2024.