Windfall tax for major companies to be introduced in Russia
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29.12.2023
FINANCIAL MARKET DEVELOPMENT: BANK OF RUSSIA’S PLANS FOR 2024-2026
The goals, directions and activities for development of the Russian financial market for 2024 and the period 2025 and 2026 have been determined.
Among the areas are the digitalization of the financial market and development of payment infrastructure, transformation of the system of foreign trade payments and settlements. Among the tasks are development of long-term savings and investment instruments for citizens, improving corporate governance, increasing the interest of banks in lending to priority projects, developing the insurance market, and protecting against foreign currency predominance.
28.12.2023
AI DEVELOPMENT: INSTRUCTIONS ARE GIVEN
Domestic data processing services should be created to use artificial intelligence technologies to enrich and mark up the data set.
From 2025, implementation of AI solutions starts in the formation of a new federal project “Digital Health Services”.
It is necessary to formulate approaches to identifying priority areas of scientific research and mechanisms for supporting the conduct of breakthrough fundamental and applied scientific research and their involving into the current instruments of state support for scientific activity.
27.12.2023
SOME SPECIAL ECONOMIC MEASURES HAVE BEEN EXTENDED
Special economic measures in the financial sector and fuel and energy sector have been extended for another two years, until December 31, 2025. There is a talk about restrictions on transactions that entail the establishment or change of rights of ownership, use, disposal of securities, shares (contributions) in the authorised capital of Russian legal entities belonging to persons of unfriendly states, in particular, transactions with shares (stakes, contributions in the authorised capital):
- joint stocks companies included in the list of strategic enterprises and joint stocks companies;
- business companies that are manufacturers (suppliers) of equipment and services for fuel and energy companies; producers (suppliers) of thermal and electrical energy; engaged in the processing of oil, petroleum raw materials and the production of their processed products;
- credit institutions, the list of which is approved by the President of the Russian Federation.
26.12.2023
GRANTING RUSSIAN CITIZENSHIP TO BELARUS, KAZAKHSTAN AND MOLDOVA NATIONALS: THE PROCEDURE TO BE SIMPLIFIED
Citizens of Belarus, Kazakhstan and Moldova who are permanently residing in Russia, have reached the age of 18 and have legal capacity, have the right to apply for admission to Russian citizenship. The application is submitted to the Ministry of Internal Affairs or its territorial body in the prescribed procedure and in an approved form.
Citizens of Belarus apply without proof of permanent residence in Russia from the date of issue of the residence permit for five years; Russian language skills; knowledge of the history and basic legislation of our country. Along with the application, they submit a residence permit and a document proving their identity and citizenship.
25.12.2023
PARENTS WILL GO ON RECEIVING CHILDCARE BENEFITS FOR CHILDREN UP TO 1.5 YEARS OLD IN CASE OF EARLY RETURN TO WORK
A law has been signed preserving the right to a monthly child care allowance for persons that returned to work (service) before a child reaches 1.5 years. Also, benefits will be paid if the mentioned persons work for another employer during the period of parental leave.
The relevant amendments have been made to the laws on benefits for citizens with children and on compulsory social insurance in case of temporary disability and in connection with maternity.
22.12.2023
FINANCIAL COMPANIES WERE GIVEN RECOMMENDATIONS ON TAKING INTO ACCOUNT CLIMATE RISKS
Financial institutions are invited to analyse emerging climate risks based on potential scenarios and create systems for monitoring them. Measures to reduce the adverse consequences of such threats and approaches to information disclosure are indicated.
The Russian economy is vulnerable to climate risks due to high carbon intensity and geographic factors. Damage from natural hazards associated with climate change is increasing. This negatively impacts the profits and asset values of non-financial companies, households and other clients of financial institutions, which creates systemic threats.
Guidance will be issued for banks in 2024 to consider climate risks when assessing capital adequacy.
21.12.2023
EXPANDING THE GROUP OF INTERDEPENDENT PERSONS AND OTHER CHANGES IN TRANSFER PRICING FROM 2024
At the end of November 2023, numerous amendments are envisaged to be made to the Tax Code of the Russian Federation, including those in terms of transfer pricing:
- the group of interdependent persons and international groups of companies has been expanded;
- the criteria for recognising transactions as controllable have been clarified;
- responsibility for transfer pricing is being tightened.
20.12.2023
THE NOTIFICATION ABOUT THE CREATION OF SEPARATE DIVISIONS IS SENT TO THE TAX OFFICE USING A NEW FORM
The Federal Tax Service has updated the form, format, and procedure for filling out a statement about the creation of separate divisions of a Russian organisation on the territory of Russia (with the exception of branches and representative offices) and about changes to previously transmitted information.
Now the address of a separate subdivision includes the number of the land plot. Address information is filled in in accordance with the data of the State Address Register.
19.12.2023
RUSSIA STARTS DEVELOPING CRUISE TOURISM IN THE FAR EAST AND THE ARCTIC
A draft law aimed at developing cruise tourism in the Far East and the Arctic zone was adopted in the second reading.
Russian cruise ships, their passengers and crew members will be exempt from border regulations when calling at ports or points located in the Arctic zone and the Far East. However, a notification about the route, passengers and crew members of the ship should be submitted to the border authorities.
18.12.2023
ADS ON INSTAGRAM MUST COMPLY WITH LEGAL REQUIREMENTS
Operators of advertising data, advertisers, advertising distributors, and operators of advertising systems are responsible for the completeness, reliability, relevance of the information, and also for submitting information to Roskomnadzor in due time. Moreover, distribution of such advertising is allowed provided that an identifier is assigned to it.
According to Roskomnadzor, these requirements also apply to persons distributing advertising on Instagram.
15.12.2023
THE RIGHT TO MANAGE PULKOVO AIRPORT IS WITHDRAWN FROM FOREIGN COMPANIES
To manage Pulkovo Airport, the Government will create VSS Holding LLC, which will receive 100% of the shares of the airport management company Northern Capital Gateway, owned by the Cypriot structure Thalita Trading Limited.
The holding participants will be 14 companies (including 11 foreign companies) that indirectly own shares in Northern Capital Gateway LLC. At the same time, the right to control the votes of foreign participants will be temporarily transferred to Northern Capital Gateway LLC and Advanced Industrial and Infrastructure Technologies-7 limited liability company. Foreign participants will be able to restore these rights subject to the conclusion of corporate agreements with other holding participants and compliance with the requirements of Russian legislation.
14.12.2023
THE TRANSITION OF RUSSIAN IT COMPANIES TO AUTHORISATION THROUGH DOMESTIC GOVERNMENT SERVICES WILL BE POSTPONED UNTIL 2025
The State Duma adopted a law establishing a transition period for Russian IT companies until January 1, 2025, during which they will be able to use their information systems to authorise users, making preparations for the transfer of these systems under Russian control.
In addition, the procedure for authorising users on information resources using the number of a mobile radiotelephone operator is being clarified.
13.12.2023
ROSKOMNADZOR STARTS MAINTAINING A REGISTER OF HOSTING PROVIDERS
Government has set a procedure for maintaining the register of hosting providers (to be kept by Roskomnadzor).
The register to be maintained in electronic form. Information on the hosting provider to be included into the register on the basis of a notification of activities to provide processing capacity for posting information in an information system permanently connected to the Internet.
12.12.2023
PREFERENTIAL LENDING FOR INVESTMENT PROJECTS IN THE TOURISM SECTOR: THE PROCEDURE FOR CREATING A REGISTER OF BORROWERS HAS BEEN UPDATED
Banks are reimbursed for lost income on preferential loans issued for the implementation of investment projects in the tourism sector through subsidies. The Ministry of Economic Development has approved a new procedure and criteria for inclusion in and removing from the register of borrowers. Previously, they were approved by Russian Federal Agency for Tourism.
11.12.2023
PROCEDURE FOR TAKING DIRECT OWNERSHIP OF SHARES IN AN ECONOMICALLY SIGNIFICANT COMPANY TO BE IMPROVED
The State Duma adopted in the first reading a bill establishing a mandatory and optional procedure for entering into direct ownership of shares and interests in an economically significant organisation.
The first is for citizens and residents of Russia. The second is for persons and entities that indirectly own shares and interests in an economically significant company.
The procedure for filing applications for direct ownership of shares and interests in an economically significant organisation is being clarified, as well as the procedure for interaction of such companies with Rosfinmonitoring.
08.12.2023
NEW IFRS DOCUMENTS TO BE INTRODUCED IN RUSSIA
New IFRS documents to be introduced in Russia:
- “Initial application of IFRS 17 and IFRS 9 - Comparative information”;
- “Determining Accounting Estimates (Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”)”;
- “The Lease Liability in a Sale and Leaseback Transaction (Amendments to IFRS 16)”.
07.12.2023
REPATRIATES WILL BE ABLE TO RETURN TO RUSSIA AS PART OF THE STATE PROGRAM FOR THE RESETTLEMENT OF COMPATRIOTS FROM ABROAD
As part of the state program for the resettlement of compatriots from abroad to Russia, the institution of repatriation to be established from January 1, 2024.
Repatriates are entitled to choose a mechanism for participation in the state program - resettlement to any region with no agreement of the corresponding authority and without state support, or on general grounds.
Confirming the knowledge of the Russian language is not necessary filing an application for participation in the state program.
06.12.2023
MINISTRY OF FOREIGN AFFAIRS ANNOUNCED NEW RULES FOR OBTAINING RUSSIAN CITIZENSHIP
A more liberal procedure for registering a change of citizenship is provided:
- the list of documents to be accepted as confirming the knowledge of the Russian language has been expanded;
- the demand to provide the consent of the second foreign parent to admit Russian citizenship to a child born in a mixed marriage is abolished;
- the list of documents that may serve as confirming the applicant’s residence in Russia as of February 6, 1992 is also expanded for the purpose of recognising a person as the Russian citizen.
- no more need to present a residence permit abroad when filing applications for admission to or renunciation of citizenship with Russian agencies abroad.
05.12.2023
PROCEDURE FOR SUBMITTING REPORTS ON FOREIGN ACCOUNTS BY RESIDENTS HAVE CHANGED
Federal Tax Service reports that the Government has supplemented the list of information to be provided by residents that are legal entities or individual businessmen when performing transactions on their foreign accounts as part of their obligations under foreign trade agreements.
04.12.2023
ONLINE ADS ON FOREIGN WEB-RESOURCES (INCLUDING PROHIBITED SOCIAL NETWORKS) TO BE MARKED AS NORMAL
Roskomnadzor reminded that posting online ad for Russian audiences on foreign information resources, including Facebook and Instagram (owned by Meta, which is recognised as extremist in Russia and is prohibited in Russia), does not relieve an advertiser and advertising distributor from the obligations provided for by Russian legislation, including labelling of advertising and transfer of information on it to Roskomnadzor.
01.12.2023
REPORT ON TRANSFERS USING FOREIGN ELECTRONIC MEANS OF PAYMENT USING NEW FORMS
Residents submit reports to the tax authorities on the movement of financial assets in foreign accounts (deposits) and on transfers of funds without opening a bank account using electronic means of payment provided by foreign payment service providers.
Report forms are presented in the new wording. It is regulated to fill out reports for businesses if there are credits and (or) write-offs in the reporting quarter related to the execution of foreign trade contracts (loan agreements) registered by authorised banks.
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