Development of court practice regarding regional tax incentive application regarding real estate fixed assets in Moscow Region

On 5 February 2018, the Arbitration Court of Moscow Region delivered its decision (hereinafter, the “Decision”) on ZKK VODOKANAL (the “Company”) (case No. А41-50945/17). The case considered the issue of determining the moment when the right to apply Moscow regional property tax incentive arises (hereinafter, the “Incentive”). Continue reading “Development of court practice regarding regional tax incentive application regarding real estate fixed assets in Moscow Region”

New capital amnesty

On 19 February 2018 the President of Russia signed three federal laws[i] which extended the capital amnesty campaign and timeframes for tax-exempt liquidation of foreign companies and unincorporated structures. Continue reading “New capital amnesty”

Development of court practice regarding application of the beneficial owner concept

On 2 August 2017 the Commercial Court of Kaliningrad Region delivered its decision (the “Decision”) on NPO Digital Television Systems (the “Company”) (case No. А21-2521/2017). The Decision is currently about the only positive example of the most recent court practice of the Russian courts dealing with application of the concept of the “person beneficially entitled to income” (the beneficial owner concept). Continue reading “Development of court practice regarding application of the beneficial owner concept”

Development of court practice on tax disputes over charging personal income tax on amounts paid to employees by agreement at termination of employment

On 16 June 2017 the RF Supreme Court rendered a ruling in case No. А42-7562/2015. In this case the court considered a dispute between Murmansk Trawl Fleet PJSC (hereinafter MTF) and the Federal Tax Service Interdistrict Inspectorate for Major Taxpayers in Murmansk Region. One of the subjects of the case was the charging of personal income tax on amounts paid to an employee by agreement between the employee and the employer at termination. Continue reading “Development of court practice on tax disputes over charging personal income tax on amounts paid to employees by agreement at termination of employment”

Russia’s accession to the Multilateral Convention to implement measures under the BEPS Plan

On 7 June 2017 the Russian Federation signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the “Multilateral Convention[1]). The Multilateral Convention was developed by the countries that are members of an Ad Hoc Group of the Organisation for Economic Cooperation and Development as part of implementing “Action 15” under the Plan to Prevent Base Erosion and Profit Shifting (BEPS). The Multilateral Convention makes it possible to implement the provisions of the BEPS Plan without amending existing agreements on avoidance of double taxation (“Tax Agreement”). Each jurisdiction may choose the provisions it considers acceptable for itself (other than mandatory provisions) and notify their treaty parties of this. Continue reading “Russia’s accession to the Multilateral Convention to implement measures under the BEPS Plan”

Transfer pricing compliance in Russia. Part 3. Stages of transfer pricing compliance

Dentons’ Tax and Customs practice congratulates its clients and friends on the end of the first stage of transfer pricing compliance for 2016 – the filing of the notification of controlled transactions completed in 2016! Continue reading “Transfer pricing compliance in Russia. Part 3. Stages of transfer pricing compliance”

Development of court practice of determining the starting date for payment of property tax on a fixed asset that is ready for operation

On 28 April 2017 the Commercial Court of St. Petersburg and Leningrad Region rendered a decision in case No. А56-87465/2016 (the “Decision”) under the claim of Penobeton-Pikalevo LLC (the “Company”). The case considered the issue of declaring a fixed asset ready for operation for the purpose of starting to pay property tax. Continue reading “Development of court practice of determining the starting date for payment of property tax on a fixed asset that is ready for operation”