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”

Confirmation of direct investment in capital to apply a reduced tax rate on payment of dividends

On 30 December 2016 the Commercial Court of Voronezh Oblast delivered a judgement in case No. А14-10190/2014 (the “Decision”) under the claim of Ilyushin Finance Co. Open Joint Stock Company (the “Company”). The case is an example of a broad interpretation of the list of documents confirming entitlement to a reduced tax rate on payment of dividends provided by double tax treaties. In particular, when the requirement on the amount of capital investment is met by the purchase price of the shares of the company paying the dividends. Continue reading “Confirmation of direct investment in capital to apply a reduced tax rate on payment of dividends”

Application of the concept of the person beneficially entitled to (beneficial owner of) income

Dentons’ Russia Tax practice would like to remind that, starting from 1 January 2017, the procedure for confirming entitlement to tax benefits under relevant double tax treaties when paying income to foreign companies from the Russian Federation has changed. Continue reading “Application of the concept of the person beneficially entitled to (beneficial owner of) income”

Development of court practice regarding property tax on energy-efficient buildings

On 16 September 2016 the Commercial Court of Kemerovo Region delivered a decision in case No. A27-13534/2016. Continue reading “Development of court practice regarding property tax on energy-efficient buildings”

Import of raw materials and components for manufacturing of medical devices exempted from VAT

Federal Law No. 225-FZ on Amendments to Part Two of the Tax Code of the Russian Federation dated 30 June 2016 enters into force on 1 August 2016. According to the law, a VAT exemption is granted on import of raw materials and components of devices for which no analogues are manufactured in Russia and which are intended for the manufacturing of VAT exempt medical products. The list of such medical products is currently approved by RF Government Resolution No. 1042 of 30 September 2015. Continue reading “Import of raw materials and components for manufacturing of medical devices exempted from VAT”

Development of the tax practice of the “beneficial owner” concept

On March 3, 2016 the Commercial Court of Moscow rendered a decision on case No. А40-241361/15 (the “Decision”) under the claim of BANK INTEZA joint stock company (the “Russian Company”). The decision contains a number of findings that in future may be used by both tax authorities when conducting tax audits, and by taxpayers to assess their risks when the beneficial owner concept is applied. Continue reading “Development of the tax practice of the “beneficial owner” concept”