Windfall tax for major companies to be introduced in Russia
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29.07.2022
CURRENCY PENALTIES ARE REDUCED
The President signed a law introducing amendments to Article 15.25 of the Code of Administrative Offences of the Russian Federation, establishing liability for violation of currency legislation.
The article excludes the mention of professional participants in foreign economic activity. Penalties for illegal foreign exchange transactions have been reduced for all participants in foreign economic activity.
28.07.2022
BRANCHES OF FOREIGN COMPANIES THAT ARE DEVELOPERS OF SUBSOIL RESOURCES AND OWNERS OF GAS TRANSMISSION INFRASTRUCTURE CAN BE FORCIBLY TRANSFORMED INTO RUSSIAN LLCs
Laws on foreign investments, on privatisation, on registration of legal entities, on concession agreements have been adjusted.
It is possible to forcibly transform branches of foreign companies that are developers of subsoil resources and owners of gas transmission infrastructure into limited liability companies by decision of the arbitration court.
This is about branches with at least 25% of the shares of Russian owners. During the transformation, the rights of foreign owners are preserved but may be limited if they interfere with the operation of the limited liability companies.
27.07.2022
PERSONAL DATA ARE SAFE & SECURE
Operators are expressly prohibited from refusing to provide services to citizens if they refuse to provide their personal data in cases where this is not necessary. The processing of biometric personal data of minors is limited.
26.07.2022
DIGITAL FINANCIAL ASSETS: A SPECIAL TAXATION PROCEDURE IS ESTABLISHED
Amendments to the Tax Code concerning a special taxation procedure for transactions with digital financial assets (DFA) and hybrid digital rights are approved. Based on this, free circulation of digital rights becomes possible.
25.07.2022
LIABILITY IS ESTABLISHED FOR THE REPEATED DRIVING UNDER DISQUALIFIED DRIVING LICENCE
Independent and enhanced administrative liability is established for driving a vehicle with a disqualified driving licence in case of the repeated violation.
22.07.2022
EXPORTERS OF NON-RESOURCE GOODS EXEMPTED FROM MANDATORY REPATRIATION OF FOREIGN EXCHANGE EARNINGS
Exporters exempted from mandatory repatriation of foreign exchange earnings. They are allowed to transfer foreign currency received from non-residents under foreign trade agreements to their accounts opened in foreign banks, the prohibition of which is established by Decree of the President of the Russian Federation No. 79 of February 28, 2022.
The exception is persons supplying raw materials (oil, gas, fish, salt, sulphur, graphite, asbestos, ore, ferrous and basic non-ferrous scrap waste, pearls, wood, etc.). They must repatriate the proceeds within 120 business days of being credited to the foreign account.
21.07.2022
FROM DECEMBER 1, 2022, PROVIDERS OF LEGAL AND ACCOUNTING SERVICES, AS WELL AS LAWYERS AND NOTARIES MUST REPORT FREEZING OF CLIENTS' ASSETS
Starting from December 1, 2022, the obligation to provide Rosfinmonitoring with information on measures to freeze (block) funds or another property taken in accordance with subitem 6 of item 1 of article 7 of the anti-money laundering law becomes applicable, inter alia, to lawyers, notaries, trustees (managers) of a foreign structure without forming a legal entity, executive bodies of a personal fund that has the status of an international one (except for an international inheritance fund), as well as to persons engaged in entrepreneurial activities in the field of providing legal or accounting services. The procedure for reporting the relevant information will be determined by the Government of the Russian Federation.
20.07.2022
THE EUROPEAN COURT OF HUMAN RIGHTS WILL INFORM APPLICANTS FROM RUSSIA OF ITS DECISIONS THROUGH THE COURT'S DATABASE
The European Court of Human Rights informs that due to interruptions in international postal communication with Russia, the Court, as an exception, decided to notify applicants of decisions and rulings adopted by its Chamber and Committee after March 1, 2022 following the results of consideration of complaints against the Russian Federation, only through its database.
19.07.2022
THE MINISTRY OF INDUSTRY AND TRADE HAS ADJUSTED THE LIST OF GOODS FOR WHICH PARALLEL IMPORTS ARE ALLOWED
The range of goods subject to parallel imports has been expanded, which relate, in particular, to perfumery and cosmetics, personal hygiene items, watches, products made of plastic, rubber, base metals and some other product groups.
18.07.2022
FROM JULY 1, 2022, THE MONTHLY LIMIT FOR TRANSFERS OF FUNDS ABROAD FOR INDIVIDUALS IS INCREASED UP TO $1 MILLION
It is reported that from July 1, 2022, individuals that are Russian residents are entitled to transfer within a calendar month from their account in a Russian bank to their account abroad or to another person no more than one million US dollars, or an equivalent amount in another foreign currency.
A similar threshold is set for transfers of resident individuals originating from friendly states.
15.07.2022
RUSSIA IS PLANNING TO SETTLE PAYMENTS UNDER EUROBONDS IN ROUBLES AT THE DOMESTIC RATE
Russia will fulfill debt obligations under Eurobonds to residents and foreign creditors in roubles at the domestic rate. For this, foreign depositories should open "I" type accounts with the Russian central depository.
14.07.2022
RULES FOR RESIDENTS ARE RELAXED - WITH RESPECT TO CONTRIBUTIONS TO THE PROPERTY OF FOREIGN COMPANIES
From June 1, 2022, residents are entitled, without obtaining individual permissions from the Central Bank of the Russian Federation, to pay for shares, deposits, shares in the property of non-residents, as well as under simple partnership agreements, if such payment is made:
- in roubles or the currency of a friendly state;
- or in the currency of an unfriendly state in the amount of not more than 15 million roubles.
Previously, such transactions were possible without obtaining an individual permit from the Bank of Russia when depositing funds in favour of residents only from friendly countries in the currency of a friendly state or in roubles in the amount of no more than 10 million roubles.
13.07.2022
THE FEDERAL TAX SERVICE REMINDS THAT AUTOMATED "SIMPLIFIED TAXATION" STARTS ON JULY 1, 2022
From July 1, 2022, in Moscow, the Moscow region, Kaluga region and in the Republic of Tatarstan, an experiment will start to introduce a new special taxation regime "Automated Simplified Taxation System" (also known as AUTS). For the convenience of taxpayers, a promo page has been launched on the website of the Federal Tax Service, in order to help in understanding nuances of applying this regime.
Organisations and individual businessmen, whose number of employees is not more than 5 people and whose annual income is less than 60 million roubles, will be able to apply it.
12.07.2022
FROM JUNE 29, 2022, DOCUMENTS FOR REGISTRATION OF RIGHTS TO REAL ESTATE AND CADASTRAL REGISTRATION SHOULD BE SUBMITTED ONLY IN PERSON OR IN ELECTRONIC FORM, BUT NOT BY MAIL
Amendments to the Law on State Registration of Real Estate exclude postal items from the number of ways to send an application for registration of rights or cadastral registration. Thus, the corresponding documents should be submitted only in person to a subdivision of the Federal Cadastral Chamber of Rosreyestr or to a multifunction center, or sent in electronic form signed with an enhanced certified digital signature (including through the public services portal).
11.07.2022
PHARMACY-SOLD ASSORTMENT IS PROPOSED TO BE EXPANDED
A draft amendment to the Law on the Circulation of Medicines has been submitted to the State Duma, aimed at increasing the range of products authorised for release in pharmacies.
In particular, it is proposed to allow pharmacies to sell orthopaedic products, hosiery and clothing, household chemicals (only antimicrobial), lemonades and non-alcoholic beer, healthy food and sports equipment.
08.07.2022
EXPORTERS CAN RETAIN UNSOLD FOREIGN EXCHANGE EARNINGS CREDITED UNTIL JUNE 9, 2022
In connection with the amendments introduced by Decree of the President of the Russian Federation No. 360 of June 9. 2022 the mandatory sale of foreign exchange earnings under foreign trade contracts with non-residents is not carried out from June 10, 2022.
The Bank of Russia clarified that this also applies to revenue credited to accounts with authorised banks from February 28 to June 9, 2022 and not sold. The clarification applies from June 27, 2022.
07.07.2022
AMENDMENTS TO THE SUBSOIL LAW: SUBSOIL PLOTS IN THE MURMANSK REGION AND KARELIA WILL BE PROVIDED FOR GEOLOGICAL STUDY FOR UP TO 7 YEARS, AND ACCESS TO RUSSIAN SUBSOIL WILL BE BLOCKED FOR FOREIGNERS
The amendments specify in which regions subsoil plots are provided for use for geological study of subsoil for a period of up to 7 years. Additionally, the Murmansk Region and certain territories of the Republic of Karelia, classified as the land territories of the Arctic zone, are included.
Users of Russian subsoil can only be legal entities established under Russian law or individual entrepreneurs who are citizens of Russia, unless otherwise provided by federal laws. The right to use subsoil shall be terminated ahead of schedule if the conditions for the mandatory transfer of the right to use subsoil plots and re-issuance of a licence are not met.
The created Russian legal entity must apply for licence renewal. An agreement shall be concluded between foreign and Russian companies on the transfer of property or property rights on a reimbursable basis for conducting activities.
06.07.2022
PARALLEL IMPORTS IS LEGALISED
It is not considered a violation of the exclusive right to the results of intellectual activity, or means of individualisation, the use of results of intellectual activity expressed in certain goods, as well as means of individualisation with which such goods are marked. This concerns foreign goods that are allowed to be imported into Russia without the consent of the right holders, the list of which is established by the RF Ministry of Industry and Trade.
05.07.2022
INVESTORS WILL OBTAIN TAX DEDUCTIONS
The Tax Code of the Russian Federation is supplemented with a new Chapter providing for tax deductions for participants in investment protection and promotion agreements (IPPAs) concluded after June 1, 2022. Deductions will be provided only for those agreements one of the parties to which is the Russian Federation.
Such deduction allows an IPPA participant to reduce the amounts of taxes payable to the budget and advance payments on them by the actual costs subject to reimbursement.
04.07.2022
AMENDMENTS TO THE CIVIL CODE: TRADEMARKS MAY BE REGISTERED FOR SELF-EMPLOYED PERSONS
Trademarks may be registered in the name of citizens, including those that are self-employed. Also, obligatory registration of a pledge of the exclusive right to a computer program or database registered with Rospatent has been introduced. Amendments will enter into force upon the expiry of a year after publication.
01.07.2022
INDIVIDUALS ARE ALLOWED TO TRANSFER TO THEIR FOREIGN ACCOUNTS THE CURRENCY RECEIVED FROM NON-RESIDENTS IN TRANSACTIONS WITH FOREIGN REAL ESTATE OR SECURITIES
This permission covers the following transactions:
- transactions entailing the emergence of title to immovable property (including real estate under construction) located outside the territory of the Russian Federation;
- transactions entailing the emergence of title to securities, as well as as a result of the redemption of securities held by a foreign depository, foreign bank, other organisation of the financial market located outside the territory of the Russian Federation, involving the registration of rights to securities, their storage outside the territory RF.
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