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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 restricted by law.

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.

Before March 2017 State Labour Inspection had the right to plan inspection of a company no more often than once every three years.

Now legal entities and individual entrepreneurs will be audited basing on risk category assigned and inspections will be made with the following intervals:

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.