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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 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.