Windfall tax for major companies to be introduced in Russia
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17.05.2024
LIST OF CASES TO USING ‘S’ TYPE ACCOUNTS HAS BEEN EXPANDED
The rules for using ‘S’ type accounts for settlements and transactions have been adjusted.
The transfer to residents of funds in the amount of payments on securities previously credited to their ‘S’ type accounts is settled for the following cases:
- after March 1, 2022, foreign creditors were not owners of the securities for which payments were credited;
- after March 1, 2022, transactions with securities were carried out under permits provided for by presidential decrees.
16.05.2024
OFFSHORE COMPANIES FOR TAX PURPOSES - A SPECIAL LIST HAS BEEN APPROVED
The Russian Ministry of Finance has approved a Special List of states and territories that provide preferential tax treatment and (or) do not provide for the disclosure and provision of information when conducting financial transactions (offshore zones). The special list of offshore zones includes 40 countries.
It applies to tax periods 2024-2026 for income tax and personal income tax for the purposes of exemption from taxation of CFC profits, determining the tax base for income tax and applying tax rates for income tax.
15.05.2024
HOSTING PROVIDERS DO NOT NEED A LICENCE TO PROVIDE COMMUNICATION SERVICES
The activities of hosting providers do not require obtaining a licence to provide communication services.
A hosting provider is a person who provides services to provide computing power for placing information in an information system that is permanently connected to the Internet. These services are not communication services.
14.05.2024
LIST OF TAXPAYERS ENTITLED TO ENTER INTO PRICING AGREEMENTS HAS BEEN EXPANDED
The rules for concluding a pricing agreement for tax purposes in relation to a foreign trade transaction have been adjusted.
A taxpayer who is a party to transactions that are recognised as controlled and the subject of which are goods included in one or more commodity sections, and the amount of income (expenses) for which is at least two billion roubles per calendar year, can now apply to the Federal Tax Service with an application for the conclusion of such an agreement.
13.05.2024
QUOTAS FOR THE EXPORT OF MINERAL FERTILIZERS HAVE BEEN EXTENDED
It was decided to extend non-tariff quotas for the export of mineral fertilizers from Russia outside the EAEU. They will be valid from June 1 to November 30, 2024 inclusive.
The total export quota is 19.7 million tons. The Ministry of Industry and Trade will distribute it among exporters. Quotas do not apply to the supply of fertilizers to Abkhazia and South Ossetia.
10.05.2024
BANK OF RUSSIA LEFT THE KEY RATE AT 16% PER ANNUM
On April 26, 2024, the Bank of Russia decided to maintain the key rate at 16% per annum.
The return of inflation to target in 2024 and its further stabilisation around 4% suggests a longer period of maintaining tight monetary conditions of the economy. According to the Bank of Russia's forecast, annual inflation will drop to 4.3 - 4.8% in 2024 and return to 4% in 2025.
09.05.2024
REQUIREMENT FOR MANDATORY REPATRIATION OF FOREIGN CURRENCY AND SALE OF FOREIGN CURRENCY PROCEEDS HAS BEEN EXTENDED
The requirement for the mandatory repatriation of foreign currency and the sale of foreign currency earnings under foreign trade contracts for certain major Russian exporters has been extended until April 30, 2025.
At the same time, the period for exporters to credit foreign currency earnings to their accounts has been increased from 90 to 120 days (from the date of transfer of goods to non-residents, performance of work for them and provision of services in accordance with foreign trade contracts).
08.05.2024
MINIMUM PERIOD FOR KEEPING COMPANY DATA IN THE PUBLIC DOMAIN HAS BEEN REDUCED
The Tax Code of the Russian Federation provides for posting some information on the company that is not recognised as tax secrets in the form of open data on the official website of the Federal Tax Service, if such information does not relate to state secrets.
Such information shall be posted on the Service’s website within certain periods and is publicly available for at least a year.
From May 19, 2024, this period to be reduced to one month.
07.05.2024
AMENDMENTS TO THE TAX CODE: SPECIAL STAMPS ON TOBACCO, EXCISE TAXES ON WINE, MINERAL EXTRACTION TAX ON THE EXTRACTION OF SEMI-PRODUCTS WITH PRECIOUS METALS
There is a transition to payment of excise tax on tobacco based on data from the state information monitoring system. Registration and control special marks are being introduced for application to the packaging of tobacco and excisable nicotine-containing products. They will replace excise stamps.
In order to support domestic winemaking, from May 1, 2024, excise tax rates on Russian wines will be reduced: fortified (liqueur) wine, fortified wine in bulk, sparkling wines, including Russian champagne. Manufacturers of fortified (liquor) wines and wine materials are exempt from paying advance excise taxes.
A coefficient is provided that increases the amount of mineral extraction tax for the extraction of semi-products containing one or more precious metals (gold, silver, platinum, palladium, iridium, rhodium, ruthenium, osmium) for the tax period, the beginning of which falls on the period from June 1 to December 31 2024 inclusive.
06.05.2024
PAYMENT PROCESSORS CAN BE REGISTERED WITH THE FEDERAL FINANCIAL MONITORING SERVICE ONLY AFTER BEING INCLUDED IN THE REGISTER OF THE BANK OF RUSSIA
From October 1, 2023 to October 1, 2025, the Federal Financial Monitoring Service will register payment processors in the procedure prescribed by the law on combating money laundering and the financing of terrorism, provided that information about them is entered into a special register by the Bank of Russia. If the payment processor plans to register with the Federal Financial Monitoring Service, then the necessary documents for this need to be sent only after entering the information into the register.
Companies that worked as payment processors before October 1, 2023 are required to enter information about themselves into the register of payment processors before October 1, 2024. After this date, in the absence of information in the register, the activity of accepting payments as a payment processor is prohibited.
03.05.2024
TIME LIMITS HAVE BEEN ESTABLISHED FOR THE FORCED CONVERSION OF SECURITIES OF FOREIGN ISSUERS INTO SHARES OF AN INTERNATIONAL COMPANY
Previously, it was decided to create international companies in special administrative regions by way of incorporation. This will help speed up the transfer to Russia of foreign assets of companies that are currently hampered by sanctions.
In this regard, the Board of Directors of the Bank of Russia established the procedure and terms for the forced conversion of securities of foreign issuers certifying rights in relation to shares of joint stock companies with the status of an international company into shares of such joint stock companies.
02.05.2024
PBU 4/99 ‘ACCOUNTING STATEMENTS OF A COMPANY’ TO BECOME INVALID FROM JANUARY 1, 2025
From January 1, 2025, the Order of the RF Ministry of Finance approving PBU 4/99 becomes invalid.
This is due to the approval of a new accounting standard “Accounting (financial) reporting” (FAS 4/2023).
As the Russian Ministry of Finance has already explained, companies must apply FAS 4/2023 starting with the financial statements for 2025. No pre-schedule application provided for this standard. Starting from reporting for 2025, PBU 4/99 and Order No. 66n are not subject to application, and the provisions of other regulations on accounting reporting should apply to the extent that does not contradict the new FAS 4/2023.
01.05.2024
WORLD FRIENDSHIP GAMES IN RUSSIA - THE PROCEDURE FOR HOLDING THE GAMES NOW AT THE LEGISLATIVE LEVEL
The World Friendship Games are a new format of international sports competition that supports the principle of universal accessibility of sports and the absence of discrimination against any group of athletes.
The following is now provided in legislation:
- the powers of the IFA - International Friendship Association, organiser, and organizing committee;
- the specifics of advertising and trading during the World Friendship Games;
- the rules for the use of the radio frequency spectrum;
- transport issues have been settled;
- the procedure for selling entrance tickets;
The Unified Gambling Regulator will transfer targeted deductions from bets and wagers to the organiser of the World Friendship Games in the amount of 25%.
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