Windfall tax for major companies to be introduced in Russia

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29.05.2020
THE CHIEF SANITARY DOCTOR NAMED THREE STAGES OF REMOVING RESTRICTIONS ON CORONAVIRUS

When phasing out quarantine restrictions, regions must consider:
- infection rate (average number of people infected by one patient before isolation);
- availability of free beds for the treatment of patients with COVID-19;
- testing rate per 100 thousand population.
As additional criteria, the mortality rate from COVID-19 can be used, registered weekly incidence of community-acquired pneumonia and proportion of persons immune to coronavirus.
There are three steps to remove restrictions. For each stage, the values of the criteria and the set of measures are determined.
 

28.05.2020
REPAYMENT HOLIDAY: BANKS SHOULD NOT OFFER IN RETURN THEIR OWN, LESS PROFITABLE, RESTRUCTURING PROGRAMMES, AND REQUIRE A PERSONAL VISIT BY THE BORROWER

The Central Bank identified and recognized as unacceptable the following shortcomings in the work of banks and microfinance organisations when providing borrowers with credit holidays:
- instead of repayment holiday, borrowers are offered their own, less profitable, restructuring programmes;
- information on various restructuring opportunities is not posted on the financial institution’s website or it is difficult to find required information there;
- refusal to accept repayment holiday applications remotely.

27.05.2020
STARTING FROM MAY 11, 2020, THE NEW STANDARDS FOR ISSUING SECURITIES ARE OPERATING

The new Regulations takes into account legislative amendments that entered into force on January 1, 2020 and are aimed at optimising the procedure for issuing securities.
In particular, the new Regulations provide for the procedure for submitting documents for state registration of the issue of securities in electronic form, simplify the procedure for summing up the placement of securities, regulate the procedure for registration by registrars of shares that are placed while establishing joint-stock companies (that are not credit organisations), as well as with the use of investment platforms.
 

26.05.2020
NEW RULES FOR DISCLOSING INFORMATION BY ISSUERS ON EQUITY SECURITIES ARE APPROVED

The Bank of Russia explains that the composition and structure of information in the securities prospectus and the issuer's report are close to international standards under the new rules.
Issuers will use the International Financial Reporting Standards to calculate financial indicators and provide an analysis of factors that have affected the results of financial and economic activities.

25.05.2020
FAMILIES WITH CHILDREN WILL RECEIVE ADDITIONAL PAYMENTS

The President provided for additional measures of material support for families with children.
Monthly payment in the amount of five thousand roubles for the period from April to June 2020 shall be granted to all families with a child under the age of three.
From June 1, 2020, families with children aged from three to 16 years will be able to receive a lump sum payment equal to ten thousand roubles for each child that has the Russian citizenship.
These payments shall not be taken into account as the family income when providing other measures of social support. For these payments you may apply to the Pension Fund of Russia before October 1, 2020.

22.05.2020
STARTING JULY 1 A NEW PROCEDURE FOR CASH FOREIGN EXCHANGE TRANSACTIONS IS INTRODUCED

The Central Bank re-settled the issues of conducting cash operations with cash foreign currency in authorised banks in Russia with legal entities, individual entrepreneurs and natural persons (customers).

21.05.2020
FROM APRIL 27, 2020 THE BANK OF RUSSIA REDUCED THE KEY RATE TO 5.5% PER ANNUM

The Board of Directors of the Central Bank of the Russian Federation has reduced the key rate to 5.50% per annum. A gradual decrease in the key rate has been going on since June 2019, braking just once in March 2020.
 

20.05.2020
ARE PLANNED VACCINATIONS CANCELED FOR CHILDREN DURING THE THREAT OF COVID-19?

The Ministry of Healthcare of the Russian Federation explained that it recommends suspending routine childhood vaccination throughout the country.
However, each region takes such a decision on its own. If in the region/territory they decide to resume vaccination, then it is necessary:
- to inform the population in advance about the time of vaccination, providing a preliminary appointment for a visit to a medical organisation for immunisation;
- to organise an operating schedule that excludes the accumulation of patients, and provide all the necessary preventive measures.

19.05.2020
INTRODUCTION OF THE NEW RULES FOR PASSING EXAM FOR DRIVER'S LICENCE IS POSTPONED

The entry into force of certain amendments into the Rules for holding exams for driver’s licence which were supposed to be put into operation on October 1, 2020, is postponed till April 1, 2021.
 

18.05.2020
STARTING FROM MAY 5, 2020, NEW RESTRICTIONS SHALL BE PUT INTO FORCE FOR TAPS LOCATED IN APARTMENT HOUSES

Amendments to the Law on the Turnover of Alcohol Products introduce additional requirements for public catering facilities located in apartment houses or on adjacent territories and offering their customers alcohol.
Such services may only be provided by facilities with a service room area of at least 20 square meters. However, regions shall have the right to increase the minimum necessary size of such area hall and even completely prohibit alcohol retailing in such facilities.
 

15.05.2020
EMPLOYERS WILL HAVE TO INFORM THE PENSION FUND OF RUSSIA OF NEW AND DISMISSED EMPLOYEE THE NEXT DAY

Timeline of notification by employers of the Pension Fund of Russia of hired and dismissed employees is shortened.
From the moment the decision is published and until December 31, the data is submitted no later than the business day following the date of hiring/dismissal.
Previously, data was submitted once a month.

14.05.2020
THE LIABILITY FOR VIOLATIONS IN THE FIELD OF MILITARY REGISTRATION IN ORGANISATIONS HAS BEEN STRENGTHENED

Amendments to the Code of Administrative Offences of the Russian Federation, providing for an increase in fines for administrative offences in the field of military registration, were introduced. In particular, sanctions have been tightened for those violations that may be committed by employees responsible for conducting military records.

13.05.2020
RULES FOR PROVIDING SALARY SUBSIDIES TO SMALL AND MEDIUM-SIZED ENTERPRISES ARE APPROVED

The RF government has approved the Rules for granting subsidies from the federal budget in 2020 to small and medium-sized enterprises operating in the sectors most affected by the spread of coronavirus. The measures are aimed primarily at maintaining employment and wages in April and May.
Recipients of subsidies shall be determined by the main type of economic activity the information on which is contained in the Unified State Register of Legal Entities or the Unified State Register of Individual Businessmen as of March 1, 2020.

12.05.2020
YOU MAY APPLY FOR A MORTGAGE AT A REDUCED RATE OF 6.5% THROUGH NOVEMBER 1, 2020

From April 17 to November 1, 2020, citizens may apply for a mortgage at a reduced rate of 6.5%. The difference between the market rate and the preferential one shall be recompensed to banks compensates by the state.
The program provides for a number of conditions regarding lending facilities, loan amount, down payment amount, insurance features etc.

11.05.2020
REGIONS ARE ALLOWED TO SUSPEND RESORT FEE

Since 2018, an experiment has been conducted on charging tourists with fees for using the resort infrastructure (resort fee) in the Altai, Krasnodar and Stavropol Territories. In the Republic of Crimea, the introduction of the resort fee is scheduled for May 1, 2021.
Since April 24, 2020, it has been established that the law of a constituent entity of the Russian Federation levying a resort fee can not only be stopped, but also suspended on the territory of individual or all municipalities that are part of the experiment.

08.05.2020
WHAT'S ABOUT VAT WHEN GRANTING THE RIGHT TO USE SOFTWARE UNDER A LICENCE AGREEMENT?

 The services for granting the right to use software on the basis of a licence agreement shall be exempted from VAT for the agreements concluded in the written form.

07.05.2020
AN EXPERIMENT RELATED TO INTRODUCTION OF THE ELECTRONIC PERSONNEL WORKFLOW IS LAUNCHED

 An experiment involved in working with documents in electronic form without duplication on paper (except for work books and electronic information on labor activities) shall be conducted through March 31, 2021.

Employers and employees may participate in the experiment on a voluntary basis. However, it does not apply to remote workers.

06.05.2020
SPREAD OF CORONAVIRUS AND MEASURES TAKEN TO COMBAT IT: FORCE MAJEURE OR NOT?

 The Supreme Court of the Russian Federation emphasised that recognising spread of the new coronavirus infection as force majeure cannot be universal for all categories of debtors. The type of activity of the debtor and conditions for its implementation, including the region in which the organisation operates, shall be taken into account. Therefore, in a controversial situation, courts shall establish force majeure taking into account the circumstances of a particular case (including the deadline for fulfilling the obligation, the nature of the unfulfilled obligation, the reasonableness and good faith of the debtor, etc.).

05.05.2020
TRANSPARENT BUSINESS: CHECKING THE COUNTERPARTY BECAME EASIER

 The Federal Tax Service has updated its electronic service named "Transparent business". It allows to obtain all necessary information on the taxpayers, which increases degree of security for organisations when choosing counterparties.

Now, the following information is available:

  • the average number of the organisation's employees;
  • taxes paid;
  • amounts of arrears as well as debt with respect to interest and fines;
  • tax offences committed by the taxpayer;
  • income and expenses, etc.
04.05.2020
STARTING FROM APRIL 27, 2020 THE KEY RATE IS REDUCED TO 5.5 % PER ANNUM

 According to the Information of the Bank of Russia issued on April 24, 2020, the Board of Directors of the Central Bank of the Russian Federation has reduced the key rate to 5.50% per annum. It shall also be recalled that the gradual decrease in the key rate has been going on since June 2019, braking only once in March 2020.

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