Bellerage Alinga

News

Russian mobile operators have begun work on the creation of a system for remote identification of subscribers by face and voice. This was reported by Izvestia with reference to Rostelecom, which is working on the technical part of the process. The Ministry of Communications sent a letter to telecom operators, which indicated the need to adjust the regulatory framework for the use of eSIM.

There was an exemption from considering results of intellectual activity and development that was found during the inventory in 2018 and 2019 as income. The Ministry of Finance noted that it would not extend this exemption: two years is a sufficient period for companies to put the accounting system in order without tax consequences. Now, as well as the goods identified during the inventory, these results will be required to take in revenue.

The State Duma considers a new law project, which will increase the fine for late notification about the opening of the branch office to 40 thousand rubles. Now legislation of the Russian Federation imposes a fine on the organization in amount of 200 rubles and a fine for the director is from 300 to 500 rubles. 

The Federal tax service (FTS) made it possible for employees to receive 2-PIT certificates in their personal account on the FTS’s website. For now, certificates are available for the years 2018 and earlier.

From October 1, 2019, as part of the economy digitalization, employment contracts, as well as applications for leave and dismissal can be transferred into electronic form. The form and rules of information interchange between employee and employer will be reviewed. Authorization will be carried out by using an electronic digital signature or the usual combination of login and password.

Starting from 2020, all the banks are to provide detailed information on collateral when submitting reports to the Central Bank. Now the Central Bank receives information about collateral form aggregated reports, without any details on value and type.

Today the issuance of a prepayment for business trips in foreign currency from the cash desk violates currency legislation. The fine ranges from 75 to 100% of the amount of the illegal currency transaction. 

From 2020, the database of financial statements will be transferred from the statistical authorities to the Ministry of Finance of the Russian Federation. In this regard, there have been made changes in the form of financial statements from 01.06.2019.

The Ministry of Finance has prepared a project to simplify the procedure for offsetting the overpayments of one tax to repay the obligations of another. In accordance with current rules, it is possible to offset the amount of overpaid taxes against upcoming tax payments within the limits of one-group taxes (federal, regional, local). 

Now the due is about 20-150 th. rub. in case of the failure. But a huge payment is weakened by the two laws. Firstly, it does not happen very often. Secondly, the duration of the law is only 2 months. In the nearest future the process of payment will be automated. 

The State Duma in the third reading adopted a bill on combating "wage slavery". Employers who impede employees in choosing a payroll bank will face fines. The fine for legal entities will be from 30 to 50 thousand rubles, for individual entrepreneurs - from 1 to 5 thousand rubles, for officials - from 10 to 20 thousand rubles.

In February of this year, the Central Bank issued new guidelines, which obliges banks to inform their clients about the reasons for the refusal to maintain or open an account. Now, some banks still do not explain the grounds for refusal, although last year the Central Bank has already sent a letter with such a requirement.

A new draft law defending employees in case of employer’s bankruptcy is being considered by the Russian Government. The law proposes to bring in a new social tax for employers at the rate of 0,02% of the gross salary. In case of company bankruptcy the employee can receive up to 3 monthly salaries. 

The government of the Russian Federation proposes to make a residence permit indefinite, unless it is issued to highly qualified specialists and their family members (for the duration of the work permit).

On May 23, in the third reading, a law was passed, according to which an individual entrepreneur may not use a cash register until July 1, 2021.

The third stage of amnesty of foreign capital is in effect From June 1, 2019 to February 28, 2020. Analysts predict this one to be the last stage of amnesties. Amnesty of foreign capital is a temporary amendment to the Tax and Criminal Code, exempting citizens from liability for violations of tax and currency legislation if voluntarily disclosing foreign assets.

Huawei sells its submarine telecommunications cable installation department after the US Department of Commerce has listed the company and its 67 subsidiaries on the blacklist.  This is reported by Bloomberg.

Sberbank of Russia and McDonalds are considering the possibility of opening joint service points.

Sberbank clarified that it is planned to open a “pilot” point soon, but details of the project are still being worked out. Earlier, Russian banks had already carried out projects to expand the functionality of branches with non-banking services.

Since 2015, Russia has a mechanism for concluding special investment contracts (SPIC) aimed at stimulating investment in industry. The SPIC model is to provide benefits to companies in exchange for upgrading or building production from scratch.

On May 28, 2019, the State Duma in the first reading approved the following amendments to the SPIC mechanism:

Last week Bellerage Alinga held the seminar “Relatives Abroad: The Nuances of Doing Business with Russian Companies with Foreign Participation”.

Rospotrebnadzor regulations stipulate that employers are required to ensure that all foreign employees are vaccinated against measles by December 31, 2019. The rule concerns foreigners who have not had the disease, have not been vaccinated before, or do not have such information.

Superservices are a new face of familiar public services that the russian Government of decided to subject to “digital transformation”, that is, transfer them to the online mode.

The Government of the Russian Federation has approved rules for grant provision for Russian companies to reimburse the costs of paying coupon profits on green bonds. Green bonds are issued as part of investment projects to introduce the best available technologies.

The social network VKontakte has started testing VK Pay for and individual entrepreneurs. VK Pay is a platform designed to pay for goods and services on the social network itself, on external websites or in stores.

Connection does not require technical integration - it is enough to close an agreement and specify the necessary data in the settings of the “Store” of VKontakte community.

The Federation Council voted to adopt the law on autonomous Internet in Russia. According to the law, all traffic in RuNet (Russian-language community on the Internet and websites) should be transmitted using Russian encryption tools. According to experts, this will help facilitate the secret services to decipher messages.

In March 2019, a law was passed on cancelling the paper certificate of compulsory pension insurance, which indicates the personal social insurance number (SNILS). All new certificates will be issued and stored only in electronic form. Those who already have paper certificates, will not need to exchange them. 

On February 28, the Fast Payment System (FPS), developed by the Central Bank of Russia, was launched. The service allows individuals to make instant transfers to account holders of other banks using only a mobile phone number.

The Central Bank of Russia offers to take an online financial literacy test from May 15 to May 29. Everyone can check their knowledge in the field of finance and get feedback.

The U.S.-China trade war that began in 2018 with the introduction of mutual customs duties may lead to a slowdown in the growth of the Asian economy by 0.5%, Reuters reported referring to the statement of IMF Managing Director Zhang Tao at the Asian Economic Forum.

In April 2019, Bellerage Alinga together with Bank “Otkritie” held a seminar on the topic “Foreign Currency Legislation from the Inside: New Rules of the Game”.

In February of this year, the Central Bank issued new guidelines, which obliges banks to inform their clients about the reasons for the refusal to maintain or open an account.

The European Union created the Blacklist of Offshores in 2015. It includes countries, which insufficiently prevent money laundering and terrorism according to the EU. Operations with these countries are under more strict control.

In March 2019 Bellerage was joined by the Financial Outsourcing and Legal Compliance practices of Alinga Consulting.

On the 4th of April Bellerage Alinga started a series of seminars on the latest news and trends in legislation and business. The topic was “Tax and Accounting Novels 2019”.

One of the largest customs offices of the Central region - the Moscow Regional Customs – following the experience of the Far Eastern region launched a new system of checking and issuing declarations using the EDC.

The EDC is an electronic declaration center equipped with new automated systems and inspectors throughout Russia. Some declarations in the EDC will be checked and issued automatically by a computer.

The first financial product was released by Apple, the “Apple Card”. Apple started a partnership with Goldman Sachs and Mastercard to enter the financial services market.

The Ministry of Finance has prepared a preferential bill for investors who support new projects in the early stages of development.

It became known that large companies in the agricultural sector voluntarily agreed to disclose some of the information related to its tax secret.

From March 11, 2019 Russian Ministry of Internal Affairs (MIA) starts using official lists while checking companies’ compliance with migration legislation. The lists are published on the official website of MIA, so the organizations can carry out self-checks.

The Federal tax service of Russia has launched a new service within the Transparent business platform to assess the tax burden of companies, which calculates the ratio of taxes paid to the organization's income on financial statements and compares it with the industry average.

There are new responsibilities for the heads of organization and personnel specialists, from February 17, 2019. If the company has identified workers who should have been registered with the military, but have not done it, the company needs to:

1) report to the recruitment office within 2 weeks;

 

Starting from January 1st, 2019 tax non-residents will be exempted from PIT (personal income tax) upon sale of property, if the period of ownership exceeds the minimal term.

US Treasury Secretary Stephen Mnuchin reiterated his ministry’s intention to lift sanctions on «En+», «Rusal» and «Eurosibenergo».

Currently, social tax deduction can be obtained for the following expenses: treatment, education, charity, certain types of insurance, skills assessment.

It became known that large companies in the agricultural sector, voluntarily agreed to disclose some of the information related to its tax secret.

Several Russian banks have offered to create a service, that allows employees to independently choose a bank for the transfer of their salaries. If an employee does not want to receive funds on a payroll card, he would need to contact his company's bank with a request to transfer money to any other card.

Sberbank and Mastercard launched a pilot Sberbank TapOnPhone application. For the first time in Russia, trade enterprises will be able to accept payment by cards and devices with one touch to a smartphone, without using a POS terminal. Sberbank acts as an acquirer of the project and participates in the development of a mobile application. This solution is focused on small and medium business services (taxi, cafes, restaurants, courier delivery, etc.).

Nowadays sole proprietors have to pay income tax after sale of real estate, which was used for commercial activity (including leasing of apartments). They will be able to avoid it in 2019; for this purpose it is necessary:

to use new tax regime for self-employed persons ( it will work in Moscow,  the Moscow and Kaluga regions and the Republic of  Tatarstan); to own this real estate more than 3 years

The list of  property suitable for this privilege is the following:

houses

apartments / rooms

dachas / garden houses

According to the head of Roskomnadzor, in some cases it is advisable to replace the blocking of Internet resources with the appointment of negotiable fines - a certain percentage of the company's turnover. For example, such a penalty can be applied in case of refusal to transfer databases of Russian citizens to the territory of Russia.

From January 1, 2019, all employees will have an opportunity to undergo medical examination during their working hours. Retired and pre-retired people are officially allowed to spend two working days on medical check per year; all others can do it once per three years.

Today, companies and individual entrepreneurs can receive e-money (WebMoney, YandexMoney, Qiwi) only from individuals.

The tax declaration under the simplified tax system might be obsolete from the beginning of 2019 for companies and individual entrepreneurs. The relevant legislation will be considered in the State Duma. Companies meeting simultaneously the following conditions are affected:

The owners of non-residential premises, which illegally register foreigners there, will now carry criminal responsibility. It was specified that fictitious registration of foreign citizens or stateless persons means their registration in a room where they do not live. Previously, the law applied only to apartment owners.

According to a bill, which has passed the third reading, there will be new tax regime for the self-employed in Moscow,  Moscow and Kaluga regions and the Republic of  Tatarstan in 2019 as an experiment.

According to TDI researching (a group of advertising companies) the popularity of cashback is increasing. If a bank has promised to return some of the spent money to a consumer, they spend much more. Is there any real benefit?A consumer who

Marginal quantity of social contributions to Pension fund in 2019. Transition limit from 22 % rate to 10% in 2019 will increase by 129 000 rubles and will be 1 150 000.  Marginal quantity of social contributions to FSS in 2019. The limit on the accrual

In December 2018, Bellerage together with Bank “Otkritie” held a seminar on foreign trade activity and taxes, it was part of a series “How to do business abroad” and took place in the Service Center for Business (TsUB).

Citizens of the Russian Federation will begin to receive electronic passports from 2021, with which it will be possible to open bank accounts and register individual entrepreneurs and legal entities remotely through an online platform.

From January 16, 2019, a person or organization inviting a foreign citizen to Russia will be obliged to ensure compliance with the stated entry purpose (work, study, business etc.), as well as the period of stay of the foreigner in the country.

From January 1, 2019, two mandatory requirements for cash registers come into force:

An "Intelligent Control System", which is capable of self-learning during information and decision-making analysis, replaced people:

As of now, foreign suppliers of e-services without presence in Russia are not obliged to register for VAT purposes upon providing their services to Russian business customers (i.e. legal entities and individual entrepreneurs).

In recent years, the EU has directed its attention to the shortage of taxes from the activities of global IT companies.

The Ministry of Labor plans to replace paper labor books with electronic information from 2020.

The Russian standard VAT rate will be increased from 18% to 20% as of 1 January 2019.

PIT (personal income tax) could be paid prior to salary payment.

In Russia, it is planned to create a federal register containing information on the country's population.

Since 26th of September, there are more places in Moscow where shops with “tax-free” can be found: Stoleshnikov pereulok, Ulitsa Bolshaya Dmitrovka, Kuznetskiy Most and Ulitsa Petrovka have been added to the list.

In the last years, the methods of the tax authorities to control taxpayers have undergone significant changes.

Before November 1st it is possible to apply for a discount on injury insurance contributions for the year 2019.

 1. Migration card

The State Duma passed a law introducing criminal liability for unreasonable refusal to hire or firing people of pre-retirement age.

Experts of Deutsche Bank revealed the most undervalued world currencies based on assessing the behavioral equilibrium exchange rate.

On September 17, 2018 the Central Bank of the Russian Federation raised the key interest rate to 7.5% per annum.

Starting from July 1, 2018 prepayments from state-owned companies under contracts concluded through e-procurement systems will only be allowed to be received on special bank accounts.

The owner of the bankcard will need to download an app and bind his card number to his e-mail.

Since May 14, 2018, amendments to the Federal Law on Currency Regulation have come into effect.

From October 1, employers will need to submit a new report to the local employment centers:

The Ministry of Finance and the Central Bank have developed a roadmap of personal pension scheme.

According to current legislation, a company should get registered with Roscomnadzor before starting to process personal data of physical individuals.

According to recent news articles and social media posts, Russian banks were allegedly going to transfer all information on bank accounts to tax authorities.

The package of counter-terrorist law amendments prepared by Irina Yarovaya and Viktor Ozerov came into force on July 1.

The value of IT for the banking system has changed dramatically over the last few years due to general digitalization.

Taxation of tips has always been a controversial matter.

State legislative commission has approved the initiative on the principle of "one window" for annual financial statements of legal entities.

Due to implementation of "Digital Economy" program in Russia it became necessary to enhance cybersecurity.

Starting from July 1, 2018, companies dealing with meat and dairy raw materials and products are obliged to register all of their veterinary documents in the Mercury electronic system.

The Ministry of Economic Development is going to provide additional benefits for employees who have salary deductions based on court execution acts.

Starting from October 1 this year, electronic workflow will replace paperwork for retail organizations, operators and tax authorities in the Tax Free system.

The Eurasian Economic Union (EEU) and China signed an agreement on trade and economic cooperation on May 17, 2018.

On 24 July 2018, State Duma has passed a bill to increase value-added tax (VAT) rate up to 20% from the current 18%.

On June 27 Russian social media VKontakte started testing its new online payments system (VK Pay).

A law project that will toughen penalties for late payment of salary has been introduced to the State Duma.

Employers must control the air temperature at the workplace.

 

The law changing the retirement age will come into force on January 1, 2019.

For certain categories of disputes, it is obligatory to file a letter of claim before court procedures.

Starting from 2019, new rates may be introduced for personal income tax.

As of 1st of March 2018, a special registration procedure has been implemented by the banks replacing the passports of deal required previously.

State Duma is planning to give up control over companies’ net assets/equity ratio. 

A law project optimizing the use of cash machines has been approved in first reading.

Special guarantees are provided for citizens with disabilities who can’t find a job.

Starting from next year, companies will be able to remotely open bank accounts and receive loans.

Starting from February, employers have the right to pay salaries to employees not only in rubles but also in foreign currency, including USD and euros. 

Both active and inactive individual entrepreneurs have the following debts cancelled by tax authorities:

The Central Bank has presented a strategy for the development of its IT system until 2020, whereby dramatic changes will be made.

The deadline for migration registering of foreign citizens during the 2018 FIFA World Cup (from May 25 to July 25, 2018) has increased to 3 days from the date of arrival.

In March 2018, the Federal Tax Service issued a letter explaining disputable questions arising in course of tax audits.

 Certain companies that use simplified tax system (both 6% and 15%) have the right to apply pay social taxes at reduced rates in 2018:

In 2017, for the first time in history, companies have incurred more losses as a result of cyberattacks than of thefts of hard assets.

Maternity leave can be combined with part time employment. In this case, the employee keeps both the salary and the maternity leave allowance.

Since 2018, tax allowances for the movable property purchased after 1 January 2013 have been restrained.

Amnesty of foreign capital is a set of temporary amendments to the Tax and Criminal Code, providing exemption from criminal liability upon condition of voluntary disclosure of assets located abroad.

 Since January 16, 2018, the Federal Tax Service of Russia has launched a new electronic service that allows individuals, self-employed entrepreneurs and legal entities to receive a PDF document confirming the status of a tax resident of the Russian Federation.

Since January 1, 2017 tax authorities have the right to claim tax payments from affiliated entities and individuals, including owners and shareholders. Therefore, after reorganization of a company tax liabilities are transferred to the new legal entity.

Some categories of taxpayers were allowed to take more time to start using online cash desks - up to July 1, 2019.

 It has become possible to register an LLC online via nalog.ru, without wasting valuable time and money on documents collection.

Under the Russian legislation only Russian citizens or foreigners with a permanent or a temporary residence permit can be employed as a Chief Accountant.

On 13 October 2017 the Ministry of Finance reminded that compensation of fitness for employees is not deductible for profit tax purposes.

New limit values for social taxes will be established in 2018. 

The Federal Tax Service now provides the opportunity to obtain a 2-NDFL form remotely.

Retail is famous for tough competition, and therefore retail sellers have to use latest advanced technologies in order to attract new customers.

Starting from 1 January 2018, tax allowances will be reduced for movable fixed assets purchased after 1 January 2013.

 The option will be available for export of goods and export-related services, such as:

The new 2018 year is to begin with several changes in currency control.

According to the latest explanations of the Federal Tax Service, the approach to verifying the reality of business transactions has changed:

Now the taxpayers have three years for pretrial reimbursement of overcharged tax amounts.

We would like to remind that Tax Office is able to conduct on-site audit of the individual entrepreneur operations within 3 years of de-registration.

Nikolai Nikiforov, Russian Communications and Mass Media Minister, has stated that Russia is planning to develop and produce its own crypto currency - CryptoRuble.

The amendments to be introduced into the currency regulations in 2018 will exempt Russian citizens living abroad from currency control. The only requirement is to spend abroad over 183 days per year.

Tax authorities have confirmed that compensation of accommodation for employees is not subject to personal income tax (PIT) as long as it is provided for the benefit of the company.

Russian Duma is currently discussing a new legislative draft that introduces a new calculation method for social taxes of Individual Entrepreneurs.

In case when an employee receives an advance payment and then resigns, failing to work all those paid days and not returning the overpayment, the entire amount is subject to social charges.  

Russian tax authorities are going to exclude the British Virgin Islands (BVI) from the black list of offshore territories. Since 2018, BVI authorities will be disclosing information on beneficial owners of BVI residents upon request of Russian tax authorities.

In August 2017, tax authorities released a list of the circumstances that could serve as evidence of illegal business fragmentation, such as:

Since the 3rd quarter 2017, the rules for calculating penalties on company`s tax arrears arisen after 1 October 2017 have changed.

 The State Duma has introduced a new law project that allows companies to deduct cost of tourist trips for employees for profit tax purposes under certain conditions:

State Duma has recently started to review a legislative draft whereby legal entities would be obliged to disclose information about users of corporate SIM-cards.

As of September 1st 2017, the term for voluntary liquidation of a limited liability company is legally restricted.

Tax residents of the RF are obliged to pay personal income tax (PIT) on foreign income. At the same time, these incomes are subject to PIT in the country of source.

According to Labour Code of Russian Federation, all companies are obliged to provide their employees with information about salary structure. However, there was no clear answer whether it is possible to send the payment slips by e-mail until 2017.

According to the Constitution, citizens of the Russian Federation may have two or more citizenships.

With the purpose of consumer rights protection Rospotrebnadzor (Russian Agency for Health and Consumer Rights) plans to audit legal entities and individual entrepreneurs depending on risk category assigned. This mostly concerns companies providing services to physical individuals.

Companies taking part in foreign trade operations with the countries – members of Eurasian Economic Union (Kazakhstan, Kyrgyzstan, Armenia and Belarus) should take into account that the control of statistical reports on foreign trade with these countries will be performed by Customs Service since January 1st.

Criminal liability for non-payment of social taxes may be returned into legal system until the end of July 2017, according to the information from the legislative drafting commission.

Since the beginning of 2017 tax office has started to regulate social tax’ payments. Now, all of the payment transactions and insurance reports are submitted to Federal Tax Service Inspections. The only exceptions here are contributions towards industrial accidents and occupational diseases.

Two new documents were added to the list of documents to be provided to the employee upon dismissal.

Federal law “On Independent Assessment of Qualification” came into legal force in the beginning of 2017. Now the specialized centers of qualification assessment are entitled to check whether an employee or a candidate conforms to the requirements of a certain profession.

Five modern trends can be defined that imperceptibly but persistently transform what we now call e-payments and e-commerce.

As Ministry of Labor officials explained, employers with more than 50 employees are obliged to have an internal work safety department or a qualified internal specialist.

Graitec Group announced the acquisition of the Russian engineering consulting company PSS. Graitec bought the PSS to enhance its presence on the Russian and CIS markets and strengthen its position in the Building Information Modeling segment.

Importers and exporters will receive a "50% discount" in respect of the penalties for customs law violations if, within 30 days after incurring the fine, they make the corrections and and pay the penalties due.

Russian State Duma has adopted a bill that allows to conduct business without being an individual entrepreneur. However, the types of activities concerned have not been specified yet.

Starting from May 2, 2017 all employers are obliged to brief their new employees on civil defense within the first month of their work.

State Duma has enforced amendments to legislation that will oblige all merchants with annual revenue over 40 mln RUB to accept “MIR” payment cards from October 1, 2017. Until now, only merchants with revenue over 120 mln RUB were obliged to accept payment cards apart from cash.

In the near future, the new version of the Customs Code of the Eurasian Economic Union will come into force, whereby Branches of foreign organizations will be allowed to import goods only for their own needs. This change will limit commercial activity of Branches.

On April 11, the members of the Eurasian Economic Union have signed an agreement regarding the new EEU Customs Code. The most significant features of the new Code are as follows:

If an employee decides to leave the company, he has a right to cancel his dismissal application not later than 2 weeks before dismissal. In this case the employee has the right to stay unless a new candidate has already received a written job offer for this position.

Almost every company in its business cycle faces the need for an employee to work on a day-off or holiday. It requires a special payment scheme and supporting documents.

Many employers often give presents to their employees on holiday occasions. However, it is not widely known that proper documenting allows to avoid social charges on such incentives.

For this, it is necessary to settle a gift contract with employee.

Sberbank, together with an electronics retailer M.Video, have completed the testing of a joint factoring automation project involving blockchain technology.

Within this project, the retailer and its suppliers have implemented a distributed data storage system, which allows for uploading, verifying and storing of all information about shipments. The data is subsequently used by  “Sberbank Factoring” to retrieve all  the data necessary to finance its suppliers.

In organizations with foreign workers from visa-free countries double taxation often takes place. This happens because effectively personal income tax is paid to the budget twice:

•    By the employer at the rate of 13% of worker’s income;
•    By foreign worker himself in the form of monthly patent payments.

Foreign worker is not allowed to transfer the obligation to pay patent fees on the employer, but the worker can reduce his income tax.

As part of the campaign against dishonest commercial counterparties, the following tax information about every company will appear on the Tax Service’s web site on July 25:

- Debts in respect of taxes, penalties, fines

- Liabilities of the company and its management incurred in respect of the statutory breaches

In 2016 at a meeting with business community Vladimir Putin promised to consider the issue of increasing the limit for opening a passport of deal for currency transactions. Now this limit is $ 50,000, and entrepreneurs asked to raise it up to $ 100,000. The Central Bank made a compromise decision - $ 75,000.