10.01.2025

BANK OF RUSSIA HAS DECIDED TO KEEP THE KEY RATE AT 21%

On December 20, 2024, the Bank of Russia decided to keep the key rate at 21% per annum.

There has been a more significant tightening of monetary conditions than previously expected. The Central Bank of the Russian Federation will assess the advisability of raising the key rate taking into account the further dynamics of lending and inflation. According to the Bank of Russia's forecast, annual inflation will fall to 4% in 2026.

09.01.2025

RUSSIAN EXPORTERS WILL BE ABLE TO AVOID DEPOSITING FOREIGN CURRENCY EARNINGS INTO AUTHORISED BANKS

The rules for the issuing of permits of the Government Commission for Control over Foreign Investments have been adjusted.

Now the said commission will be able to permit Russian exporters and their subsidiaries not to credit foreign currency received in accordance with the terms of foreign trade agreements to their accounts in authorised banks. These provisions will be in effect until April 30, 2025 inclusive.

In addition, Russian exporters and (or) their subsidiaries now have the right to send foreign currency from their accounts in foreign banks to pay the obligations of Russian importers under foreign trade agreements (contracts) concluded with non-residents within three days from the date of crediting the Russian currency to their accounts in authorised banks from the accounts of Russian importers.

In this case, Russian importers must ensure the import of goods into the territory of the Russian Federation or the crediting of foreign currency transferred by Russian exporters and (or) their subsidiaries to their accounts in authorised or foreign banks for non-imported (non-received) goods within a period not exceeding 180 days from the date of fulfilment of such obligations.

08.01.2025

NEW VAT DECLARATION FORM HAS BEEN APPROVED

Starting from the report for the first quarter of 2025, a new form, format and procedure for filling out the VAT declaration will be introduced, as well as formats for information from the purchase and sales books (additional sheets to them), information on issued and received invoices from invoice registers.

The approval of the new form is due to the fact that large-scale VAT amendments were introduced into the Tax Code of the Russian Federation in 2024. In particular, from 2025, VAT will have to be paid by those who use the simplified tax system. New tax rates of 5% and 7% have been introduced for them, as well as exemption from taxpayer obligations for incomes up to 60 million roubles. In addition, a mechanism has been created for collecting VAT based on the country of destination of the goods when trading through electronic platforms, the lists of non-taxable transactions, transactions taxed at a rate of 10%, etc., have been adjusted.

07.01.2025

LISTS OF COUNTRIES PARTICIPATING IN THE EXCHANGE OF TAX INFORMATION WITH THE RUSSIAN FEDERATION, AS WELL AS THOSE NOT PROVIDING SUCH EXCHANGE, HAVE BEEN UPDATED

New lists of states (territories) have been approved:

- states (territories) with which automatic exchange of financial information is carried out. The list includes 63 countries and 12 territories.. It includes Armenia, Cameroon, Rwanda and Jamaica, as well as the territory of Niue.. The 26 EU member states that unilaterally stopped the automatic exchange of financial information with Russia have been removed;

- states (territories) with whose competent authorities automatic exchange of country reports is carried out. EU countries that have unilaterally stopped the exchange are removed. Albania, Cameroon, Dominican Republic, Mauritania, Papua New Guinea, the territories of Montserrat and the Faeroe Islands have been added;

- states (territories) that do not provide for the exchange of information for tax purposes with the Russian Federation. It now includes 117 countries and 14 territories..

It is instructive to recall that the profit of a controlled foreign company is exempt from taxation if the permanent location of such a controlled foreign company is a state with which the Russian Federation has an international agreement on taxation issues, with the exception of states that do not ensure the exchange of information for tax purposes with Russia.

06.01.2025

STARTING NEXT YEAR, NON-PROFIT ORGANISATIONS WILL HAVE TO POST THEIR CHARTERS ON THE MINISTRY OF JUSTICE'S INFORMATION RESOURCE

According to the amendments, non-profit organisations (except for political parties) must post their charter within 30 days from the date of their state registration. The text of the charter shall be uploaded through the personal account of the non-profit organisation on the department's website. Similarly, it will be necessary to post a new wording of the charter if amendments are made to it.

27.12.2024

IT WAS DECIDED TO CREATE ITS OWN SYSTEM OF FINANCIAL INDICATORS IN RUSSIA

A law has been developed on financial and commodity indicators and their administrators.

The financial indicator will be recognised as an indicator of the price of financial instruments and property rights, the value of the interest rate, exposure to risk, the exchange rate. The commodity indicator will be an indicator of the price of precious metals, things (except for cash, including foreign currency, documentary securities), services related to the transportation of these things. These indicators will also recognise values calculated on the basis of a set of listed indicators.

The administrator will define indicators and disseminate information about them. Requirements for such subjects have been established. One of them is availability of own funds in the amount of at least five million roubles. The Bank of Russia will maintain a register of administrators.

The need to create a national system of indicators arose, among other things, due to the departure of foreign news agencies (in particular, Bloomberg, Refinitiv), which traditionally occupied this niche in our market. Russian participants encountered difficulties in obtaining representative information necessary for concluding transactions and fulfilling obligations under them.

26.12.2024

REQUIREMENTS FOR A FOREIGN NOMINEE HOLDER OF DIGITAL FINANCIAL ASSETS HAVE BEEN DEFINED

Digital financial assets may be credited to a foreign nominal holder of digital financial assets for recording for rights to digital financial assets owned by other persons in whose interests the recording and disposal of these digital financial assets is carried out.

The Bank of Russia has established requirements for the specified foreign nominal holder, as well as the form and procedure for providing information by this holder about its clients to the operator of the information system that takes into account the relevant digital financial assets, and in which digital financial assets are issued.

25.12.2024

CRIMINAL LIABILITY FOR ANTICOMPETITIVE AGREEMENTS, INCLUDING AT AUCTIONS, HAS BEEN ADJUSTED

The creation of cartels activities of which have led to an increase, decrease or maintenance of prices at auctions held on a mandatory basis and are accompanied by causing major damage or obtaining income on a large scale will be classified as a separate offence.

The new offence will be subject to a rule that provides for the possibility of exemption from criminal liability if the crime is committed for the first time, an accused person has compensated for the damage caused and paid double compensation to the budget. The person that was the first of the accomplices to voluntarily report the crime, contributed to its disclosure and made amends for the damage caused will also be able to count on exemption from criminal liability.

24.12.2024

MANDATORY NOTARIZATION OF REAL ESTATE DONATION AGREEMENTS BETWEEN CITIZENS TO BE INTRODUCED

From January 13, 2025, a real estate donation agreement concluded between citizens must be notarized.

The following state fees will be charged for these actions:

- by a notary employed in a state notary office - a state fee at the rates established by tax legislation;

- by a notary engaged in private practice - a single notary tariff, including federal and regional tariffs. In this case, the amount of the federal tariff is equal to the amount of the state fee provided for the performance of similar actions in a state notary office, and the amount of the regional tariff depends on the region where the notarial action is performed.

23.12.2024

EXPERIMENTAL LEGAL REGIMES’ ENTITIES IN THE FIELD OF DIGITAL INNOVATION: NEW BASIS FOR THE SUSPENDING OF THE STATUS

Amendments to the Law on experimental legal regimes in the field of digital innovation come into force on January 5, 2025. In particular, they provide for the following: if, during the implementation of the regime, as a result of the use of artificial intelligence, harm is caused to the life, health or property of a person or legal entity, this may serve as grounds for the suspending of the status of the experimental regime entity.

20.12.2024

UNTIL THE END OF 2025, BLUE CHIP COMPANIES ARE ALLOWED TO MAKE CORPORATE DECISIONS WITHOUT TAKING INTO ACCOUNT THE VOTES OF CO-OWNERS FROM UNFRIENDLY COUNTRIES

Blue chip companies engaged in power industry, engineering and trade are allowed to make corporate decisions without taking into account the votes of co-owners from unfriendly countries. It was decided to extend the validity of this rule for a year - until December 31, 2025.

19.12.2024

IFRS 4 ‘INSURANCE CONTRACTS’ WILL CEASE TO BE VALID FROM 2025

From January 1, 2025, IFRS 4 ‘Insurance Contracts’ will cease to be in effect in Russia.

This is due to the introduction of the new IFRS 17 ‘Insurance Contracts’.

18.12.2024

BANKS WILL BE ALLOWED TO REFLECT DEFERRED TAX LIABILITIES AND ASSETS IN ACCOUNTING MORE OFTEN

It is proposed to adjust the accounting procedure for deferred tax liabilities and assets by credit institutions.

In particular, it is envisaged that the said liabilities and assets may be reflected in accounting more frequent than established by the current procedure, subject to the approval of such a decision in the accounting policy.

17.12.2024

LOAN AGREEMENT WITH A NON-RESIDENT: CASES HAVE BEEN CLARIFIED WHEN A RESIDENT INDIVIDUAL MUST SUBMIT DOCUMENTS TO AN AUTHORISED BANK

The instructions for the submission of supporting documents and information by residents and non-residents to authorised banks when performing foreign exchange transactions do not provide for the registration with an authorised bank of loan agreements concluded by resident individuals with non-residents.

However, residents are required to submit documents and information to the authorised bank on a loan agreement with a non-resident if its amount exceeds the equivalent of one million roubles.

16.12.2024

FROM MARCH 1, 2025, GAS LIGHTERS WILL NO LONGER BE SOLD TO CHILDREN

Amendments have been made to a number of federal laws, the purpose of which is to prohibit children from free access to gas lighters and other potentially dangerous gas-containing household goods. These are goods for personal and household use that contain liquefied hydrocarbon gases, if the inhalation of such gases or their vapours poses a danger to life or health.

It will be prohibited to sell such goods to children, including remotely. If thee is any doubt about the buyer's age, the sale will be possible only after checking the passport or another document confirming the age of the buyer (similarly to the purchase of alcohol, cigarettes, energy drinks, information products prohibited for children, or tickets to 18+ events).