Vladimir Putin announces major tax changes

On March 25, President of Russia Vladimir Putin made a special address to the nation in connection with the difficult epidemiological and economic situation in the country caused by the spread of the COVID-19 coronavirus.

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Finance Ministry proposes confiscating funds illegally moved offshore

We already presented our vision of general trends in the taxation of intragroup services in our alert on the most important tax events for the first half of 2019. Until recently the tax authorities have followed the main two lines of attack: (1) challenging expenses on the grounds of insufficient documentary support and (2) requalification of remuneration for services in other types of income (generally dividends).

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Russian VAT on e-services: Breaking news

As you know, under the Russian Federal Law No. 335-ФЗ of 27.11.2017 all foreign e-services providers must register with the Russian tax authorities and pay Russian VAT themselves. This has given rise to many questions and technical difficulties. On 24April 2019 the Russian Federal Tax Service (“FTS”) issued the long-awaited guidance letter No. СД-4-3/7937@, where they attempted to adequately address these issues. The major conclusions discussed in the letter can be summarized as follows:

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Non-electronic services by e-services providers: VAT payment procedure

Dentons’ tax experts are keeping you posted on the latest news regarding payment of VAT on electronically supplied services (“e-services”). Today, we would like to elaborate on the topic in the light of article 161 of Russian Tax Code (“RTC”). This provision states that Russian companies should withhold VAT (act as a tax agent in the terms of the RTC) for goods/services supplied from Russian territory only if the foreign supplier does not have Russian tax registration. Continue reading “Non-electronic services by e-services providers: VAT payment procedure”

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”