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 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”

Development of court practice on tax accounting of inventory shortages

On 19 May 2017 the Arbitration Court of the Moscow Region rendered a decision in case No. А41-69837/2016 under the claim of KVINTMADI Closed Joint Stock Company (the “Company”). Continue reading “Development of court practice on tax accounting of inventory shortages”

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”

Tax. Major Russian legislation changes for 2016

We would like to present the overview of the most important legislation changes in tax for 2016. Continue reading “Tax. Major Russian legislation changes for 2016”

Recent developments of court practice concerning the documentary support for deductibility of expenses attributable to a permanent establishment of a foreign company in the Russian Federation

On 21 December 2016 the Commercial Court of Moscow delivered the Decision in case No. А40-121559/16-20-1035. In this case the court considered a dispute between ZAB Zementanlagenbau GmbH Dessau (Germany), which carries out business in Russia through a permanent establishment in Moscow (the “PE”), and the Federal Tax Service of Russia Interdistrict Inspectorate No. 47 for the City of Moscow (the “Inspectorate”). Continue reading “Recent developments of court practice concerning the documentary support for deductibility of expenses attributable to a permanent establishment of a foreign company in the Russian Federation”

Development of the court practice on accrual of personal income tax on payments to employees associated with termination of the labor contract by mutual agreement

Over the last few years, the subject of taxation of payments to employees when terminating employment contracts has led to a large number of disputes between taxpayers and the tax authorities. This September, the RF Supreme Court considered the case of Parliament Production, where the Court effectively recognized the right of the tax authorities to verify the economic justification of payments organizations make to employees when terminating their employment contracts and the recognition of organizations’ expenses on such payments for profit tax purposes (Ruling of 23.09.2016 № 305-КГ16-5939 case № А40-94960/2015). Continue reading “Development of the court practice on accrual of personal income tax on payments to employees associated with termination of the labor contract by mutual agreement”