RULES ARE SET FOR THE PAYMENT OF COMPENSATION TO FOREIGN HOLDINGS DURING THE PERIOD OF SUSPENDING THEIR RIGHTS TO ASSETS IN RUSSIA
Cabinet of Ministers has determined the procedure for paying compensation to a foreign holding company during the period of suspension of its corporate rights in relation to an economically significant organisation.
A decision to pay compensation to be made by such organisation in case of an application from a foreign holding company. Compensation must be paid in the amount of the market value of shares of an economically significant organisation that were not distributed among persons that took direct ownership of the shares.
EXPLANATIONS OF THE MINISTRY OF FINANCE ON PROVIDING INFORMATION ON FOREIGN CURRENCY EARNINGS BY EXPORTERS
A recommended sample schedule for the purchase and sale of foreign currency on the domestic foreign exchange market has appeared on the Ministry of Finance website.
A schedule to be drawn up for each legal entity subject to the Decree of the President of the Russian Federation on the mandatory sale of foreign currency by some Russian exporters, even if the planned purchase/sale volume is zero. The procedure for the formation and submission of the schedule, as well as the providing of information on planned changes in assets and liabilities, is cleared up.
RULES FOR TRADING ELECTRICITY IN THE EAEU
From January 1, 2025, the Rules for mutual trade in electrical energy in the common electrical energy market of the Eurasian Economic Union come into force.
FROM NOVEMBER 24, AT THE PORTAL OF GOVERNMENT SERVICES YOU CAN OBTAIN FREE ELECTRONIC COPIES OF CONSTITUENT DOCUMENTS FROM THE UNIFIED STATE REGISTER OF LEGAL ENTITIES
Amendments have been made to the procedure for providing information and documents included in the Unified State Register of Legal Entities and Unified State Register of Individual Entrepreneurs.
Now electronic copies of the constituent documents included in the Unified State Register of Legal Entities and the amendments made to them can be obtained free of charge through the portal of government services or the Internet service of the Federal Tax Service.
YOU CAN OBTAIN AN EXTRACT FROM THE REGISTER OF NOTARIES AND PERSONS WHO HAVE PASSED THE QUALIFICATION EXAM THROUGH THE GOVERNMENT SERVICES PORTAL
Using the government services portal, citizens and organisations will be able to contact the Ministry of Justice to obtain an extract from the register without having to visit the department and get the following information:
- on notaries carrying out professional activities on the territory of the Russian Federation, and persons temporarily replacing them;
- about persons who have passed the qualification exam.
This information may be needed to confirm the authority of the person who notarised the document, or the person to whom a citizen or representative of an organisation plans to contact.
LAW ON THE DEVELOPMENT OF TECHNOLOGY COMPANIES IN RUSSIA CAME INTO FORCE
On November 3, 2023, the law came into force that defines the legal framework for activities of technology companies in the Russian Federation, aiming at their state support.
The law defines forms of support for technology companies: tax benefits, insurance premiums, and customs duties; information, consulting and financial support, export support, creating demand for innovative and (or) high-tech products (works, services). It is planned to extend the program of preferential lending to high-tech, innovative small and medium-sized businesses
RUSSIA HAS RATIFIED THE AGREEMENT WITH THE REPUBLIC OF BELARUS ON MUTUAL RECOGNITION AND ENFORCEMENT OF DECISIONS IN CASES OF TRAFFIC VIOLATIONS
The ratification law comes into force on November 13.
The mechanism provided for by the Agreement involves sending decisions in cases of administrative offences for execution to the party in which the violator who is an individual - is permanently or temporarily residing or an organisation brought to administrative liability is registered.
NEW FORM OF TAX CALCULATION FOR INCOME OF FOREIGN ORGANIZATIONS: STATEMENT OF THE FEDERAL TAX SERVICE
A new form and format for tax calculation of income paid to foreign organisations and amounts of taxes withheld, as well as the procedure for filling it out, have been approved.
THE FEDERAL CUSTOMS SERVICE CLARIFIED THE INNOVATIONS IN THE RULES FOR PAYING THE RECYCLING FEE
Since October 29, amendments have been made to Decision of the Government of the Russian Federation No. 1291 of December 26, 2013, that regulates the rules for collecting recycling fees in relation to wheeled vehicles (chassis) and trailers for them.
NEW SERVICE AVAILABLE: ‘GOSUSLUGI’ WEB-PORTAL PROVIDES FOR OPPORTUNITY TO VERIFY PASSPORTS
A new service has been launched on the Public Services web-portal, that allows the following:
- checking validity of a passport - whether it is expired or not;
- verifying authenticity of the passport - whether the Ministry of Internal Affairs issued a document with such details.
BANK OF RUSSIA RAISES KEY RATE ONCE AGAIN TO 15% PER ANNUM
On October 27, 2023, the Bank of Russia decided to increase the key rate from 13% to 15% per annum. It has also adjusted an expecting forecast of inflation up to 7 to 7.5 percent, by the end of 2023. Given current monetary policy, inflation range to return to 4-4.5% in 2024.
AGRICULTURAL EXPORT UNDER A SPECIAL PAYMENT PROCEDURE - THE LIST OF PRODUCTS IS ENDORSED
From November 1, 2023, a special procedure applies for settlements under contracts for export of Russian agricultural products concluded at exchange. The Russian Government approved a range of agricultural goods which can be exported with settlement in roubles.
When making payments for supplies, special rouble and foreign currency accounts of type “Z” to will be used, opened in authorised banks by foreign buyers. The list of products includes pork, poultry, wheat, barley, corn, sunflower oil, white sugar, etc.
FURTHER DEVELOPMENT OF THE FINANCIAL MARKET: AGENDA FOR THE NEXT THREE YEARS
Developing long-term financing of the economy, primarily through internal resources, increasing the role of the stock market and strengthening investor confidence are the key tasks for the financial market development for 2024-2026.
Amid this, the availability of information and protection of investors’ rights are considered important.
RUSSIA’S NEW CITIZENSHIP LAW IS ALREADY IN FORCE
From October 26, 2023, the new citizenship law operates. What’s new - the Ministry of Internal Affairs explained.
A new mechanism for obtaining citizenship by participants in the state resettlement program has been introduced - without first obtaining a temporary residence permit. Notifications about obtaining citizenship, or termination of the citizenship of a foreign state by Russian nationals can be submitted not only on the territory of Russia, but also abroad, being filed with Russian foreign institutions.
WORLD FRIENDSHIP GAMES ARE EXPECTED TO TAKE PLACE IN 2024
In 2024, Moscow and Yekaterinburg to host the World Friendship Games international competitions.
GOVERNMENT DETAILED THE ISSUES OF MANDATORY SALE OF CURRENCY
The RF President determined the list of Russian exporters for whom mandatory sales of foreign currency are provided.
It has been established that it concerns crediting at least 80% of the currency to accounts in authorised banks starting from October 16, 2023. One will need to sell at least 90% of the credited amount. The terms of enrolment and sale have been determined.
It will be possible to request permission not to sell foreign currency in the amount allocated to satisfy requirements denominated in foreign currency from the Government Commission for the Control of Foreign Investments.
GOVERNMENT’S POWERS TO BE PARTLY DEVOLVED ON FEDERAL EXECUTIVE AUTHORITIES STARTING FROM 2024
The law transfers a number of powers of the Government to federal executive authorities in various areas (economy, healthcare, environmental protection, education, culture, etc.).
From January 1, 2024, certain powers of the Government to adopt normative or other legal acts will be transferred to the Ministry of Health, the Ministry of Agriculture, the Ministry of Culture, the Ministry of Labour, the Ministry of Economic Development, the Federal Railway Transport Agency, the Ministry of Transport, the Central Bank.
FOREIGN CURRENCY FROM THE ACCOUNTS OF ORGANISATIONS OR INDIVIDUAL ENTREPRENEURS TO PAY TRAVEL EXPENSES
To pay for travel expenses, legal entities or individual entrepreneurs who are residents can receive cash US dollars, euros, pounds sterling and Japanese yens from accounts based on payment standards established by law for six months from September 9, 2023.
There is no maximum limit for issuing the specified currency. There is also no provision for agreement with the Bank of Russia on increasing the limit amount.
Windfall tax for major companies to be introduced in Russia
Russian President Vladimir Putin signed a law establishing excess profit tax for large companies, whose arithmetic average profit margin for 2021-2022 exceeds RUB 1 billion (so called windfall tax).
The windfall tax rate will be 10% of the difference between companies' average profit for 2021-22 and their profit for 2018-19. However, if a security payment is made within the period from October 1 to November 30, 2023, the tax amount can be calculated at the rate of 5%, so a 50% tax discount to be provided.
This is lump-sum payment to be paid no later than January 28, 2024 and credited to the federal budget exclusively. There are exemptions from the windfall tax for a series of sectors:
SMEs and Single Agricultural Tax payers;
a number of oil and gas companies and those engaged in the coal industry;
companies with no operating income obtained in 2018-2019, as well as credit organizations and NFOs, in respect of which, as of January 1, 2023, measures were taken to prevent bankruptcy.
In addition, mechanism for calculating the tax base is established for the cases if windfall tax is accrued as a result of a tax audit, as well as the procedure for determining the tax liability in case of filing an adjusted tax return.
The law comes into legal force on January 1, 2024.