The Ministry of Finance explained the tax consequences of the property transfer under a work agreement
In a Letter from the Ministry of Finance of the Russian Federation dated 15.08.2022 No. 03-03-05/79557, the department reminded that for the organizations profit taxation purpose, by virtue of the standard of Article 689 of the Civil Code of the Russian Federation, the property receipt for free use is a gratuitous receipt of property right. When determining the taxation object for corporate income tax, income from the sale of goods (works, services) and property rights determined according to Article 249 of the Tax Code of the Russian Federation and non-operating income determined in accordance with Article 250 of the Tax Code of the Russian Federation are considered. Herewith, according to paragraph 8 of Article 250 of the Tax Code of the Russian Federation, taxpayer`s non-operating income is recognized, in particular, income in the form of gratuitously received property (works, services) or property rights.
At once, on the Ministry of Finance judgment, the property transfer to a contractor under an agreement for the relevant works implementation provided in the agreement cannot be considered for the corporate income tax purpose as a gratuitous transfer, since for the corporate income tax purposes, property (works, services) or property rights are considered to be received free of charge if the receipt of this property (works, services) or property rights is not associated with the recipient's obligation to transfer property (property rights) to the transferor (perform work for the transferor, provide services to the transferor) (paragraph 2 of Article 248 of the Tax Code of the Russian Federation).
Konsu is coming back to Russia
Dear Clients and Partners!
We’d like to invite you to the events dedicated to the return of Konsu brand to Russia! We will be glad to see you in our offices – we promise you a pleasant atmosphere and networking with festive drinks and appetizers!
Details
Languages
- Russian
- English
- Finnish
Admission
Free
Number of participants
Strictly limited
Locations and dates
Saint Petersburg
- Date: 22.09.2022
- Address: Konsu office in Saint Petersburg:
Prospekt Ligovskiy 266, building 1
Moscow
- Date: 29.09.2022
- Address: Konsu office in Moscow
1-y Derbenevskiy pereulok 5
Program
- 16:30-17:00 – Registration of guests and welcoming coffee-break
- 17:00-17:30 – Opening of the evening, greetings
- Ekaterina Zelenina, General Director of Konsu
- Mika Pitkanen, Shareholder of Konsu
- 17:30-19:00 – Networking and discussions, drinks and refreshments
- 19:00-19:15 – Lottery and drawing of prizes and Konsu specialists' consultations *
- 19:15 – Networking
Important
- *In order to take part in the lottery, you will need your business card. Please take it to the event.
- To obtain a pass to the business center territory, please take your passport or ID.
Get invitations
Changes in STD-PFR and SD-R forms are planned
The Ministry of Labor has prepared a draft order on approval of new forms of employment history. These updates are related to creation of the Pension and Social Insurance Fund, which should get started from 01.01.2023 on the basis of the merger of the PFR (Pension Fund of Russia) and the SIF (Social Insurance Fund).
In connection with these changes, the following new forms have been developed:
- The form of employment history provided to the employee by the employer (STD-R);
- The form of employment history provided using the information resources of the Pension and Social Insurance Fund of the Russian Federation (STD-SFR form),
as well as a new procedure for their completion.
If adopted, the order will enter into force on 01.01.2023.
Currently, an employee whose employment record is kept in electronic form can obtain his/her employment history from the employer in STD-R form or can obtain it in an MPSC (Multifunctional Public Services Center), in the PFR, or on the portal of government services in STD-PFR form.
From 11.01.2023, the rules will change for issuing aelectronic orders for revocation of powers of attorney
From 11.01.2023, Federal Law No. 339-FZ dated 14.07.2022 "On Amendments to Certain Legislative Acts of the Russian Federation" http://publication.pravo.gov.ru/Document/View/0001202207140102 changes the scope of the information that must be included in an electronic order on revocation of a power of attorney issued in simple written form. These orders are issued and sent through the applicant's personal account on the portal of the Federal Notary Chamber https://lk.notariat.ru/.
Changes in the information about the principal being a legal entity: in addition to the full company name, INN (Taxpayer Identification Number) or OGRN (Primary State Registration Number), e-mail address of the legal entity, it will be required to specify the full name and SNILS (Insurance Number of Individual Ledger Account) of the person acting on behalf of the legal entity without a power of attorney.
Changes in the information about the authorized person: if the authorized person is a legal entity, it will be required to specify its full company name, INN or OGRN.
Changes in the information about the power of attorney: if no exact date of issuance of the revoked power of attorney is specified, the period of its issuance must be specified.
Changes in the information about the applicant: if an electronic order is signed by a representative acting under a power of attorney, his full name, date of birth, series and number of identity card, INN, SNILS, and e-mail address must be additionally specified, and the power of attorney must be submitted in electronic form in machine-readable form and shall be issued in accordance with the requirements of Federal Law No. 63-FZ dated 06.04.2011 "On Electronic Signature".
Conclusions based on the court practice in respect of the method of notifying an employee in case of his/her dismissal
It should be reminded that in cases provided for by Article 59 of the LC RF (Labor Code of the Russian Federation), it is allowed to execute a fixed-term employment contract with an employee. According to the provisions of Article 79 of the LC RF, a fixed-term employment contract is terminated upon expiry of the term of its validity. The employee must be warned in writing about termination of the employment contract due to the expiry of its term of validity at least three calendar days before dismissal, otherwise the employment contract will be extended and reclassified into a permanent one. According to the conclusions made in Ruling No. 88-10805/2022 of the 7th Court of Cassation of General Jurisdiction dated 19.07.2022, dismissal of an employee with whom a fixed-term employment contract has been executed is illegal if (s)he is notified of dismissal in any way other than in writing, including by notification via messenger, as in the situation in the framework of the dispute. In this dispute, the court reinstated the employee. At the same time, it remains unclear whether notification via messenger is permissible if this method is expressly provided in the employment contract.
Roskomnadzor made official comments on latest changes in regulation of personal data
From September 1, 2022, amendments to the law "On Personal Data" will come into force. At present, processors must notify Roskomnadzor (The Federal Service for Supervision of Communications, Information Technology, and Mass Media) about the start or continuation of any processing of personal data, except when the data is processed in order to protect the security of the state and public order, transport security, or if the processor processes the data exclusively without any automation equipment.
Currently, the updated form of the notice has not been approved; it will become available after approval by separate order of Roskomnadzor. Prior to that, PD processor can fill out a form approved by Order No. 94 dated 30.05.2017 on Roskomnadzor’s Personal Data Portal or can send this notice in hard copy to the local office of the agency at the processor’s place of registration.
After entry into force of Roskomnadzor’s order establishing a new notification form, the processor may send a notice of changes made to the information previously submitted to the Register of Data Processors Processing Personal Data.
No deadline for notifying Roskomnadzor about personal data processing has been determined. Thus, September 1, 2022 is not the deadline for submitting a notice on personal data processing.
- 13.12.2022 New requirements for personal data operators from September 01, 2022
- 02.02.2023 Starting from March 1, 2023 Roskomnadzor can prohibit international transfer of personal data
- 17.03.2023 How to Register Transborder Data Flows in Russia: A Step-by-Step Guide
Bankruptcy moratorium: special aspects and effect for debtors and creditors
By Resolution of the Government of the Russian Federation dated March 28, 2022, a moratorium was introduced on the initiation of bankruptcy cases. In this article, we will consider special aspects of the imposed moratorium and its effect for debtors and creditors.
Currently, a moratorium on bankruptcy has been established for all categories of legal entities and individual entrepreneurs, with the exception of:
- Developers of apartment buildings included in the register of problematic facilities;
- Individual debtors included in the list approved by the Government of the Russian Federation and their affiliates.
The following special rules apply to all other persons affected by the bankruptcy moratorium:
- Applications for declaring the debtor bankrupt filed to a commercial court during the period of the moratorium, as well as applications on which no judgements have yet been passed, must be returned by the court to the applicant without consideration.
A similar fate awaits creditors’ notices of their intention to file bankruptcy applications against the debtor to the court - these applications are not subject to publication in the EFRSB (Unified Federal Register of Bankruptcy Information) until the bankruptcy moratorium is lifted.
In this case, debtors themselves are not deprived of the right to file an application to the court for their own bankruptcy. However, the debtors are released from the obligation to file an application for their own bankruptcy. - A ban is imposed on the allocation of a share (equity stake) of the founder (participant) in the company's property in connection with his/her/its withdrawal from the company, as well as on redemption by the company itself of its shares or payment by it of the actual value of the share (equity stake).
- A ban is imposed on termination of obligations by offsetting homogeneous counter claims if the priority for performance of obligations is violated.
- Companies are prohibited to pay dividends, as well as to distribute profits between founders (participants). At the same time, the Bank of Russia points out that business entities are not limited in their right to make decisions on payment of dividends during the moratorium period. However, it will be possible to make payments in accordance with the decision only after the lifting of the moratorium.
- Default charges (fines, penalties) and other financial sanctions are not accrued for failure to perform or improper performance of monetary obligations, or for failure to make mandatory payments, with the exception of current payments.
- Pledged property may not be recovered.
- All enforcement proceedings in respect of the debtor are suspended. The Ministry of Justice of the Russian Federation has made a clarification that suspension of enforcement proceedings is possible only in respect of the legal entities and individual entrepreneurs who filed bankruptcy applications or against whom bankruptcy applications were filed, including those filed before 01.04.2022, the issue of which acceptance was not resolved by the date of introducing the moratorium. Enforcement proceedings are not suspended in respect of any other legal entities; recoveries are ongoing in the usual way.
For all legal entities and individual entrepreneurs who are not willing to apply the bankruptcy moratorium against themselves, the right to refuse from the moratorium is established by law. The debtor's application about the decision made published on the EFRSB website serves as such refusal. From the date of its publication, the rules and restrictions listed above cease to apply to this company.
October 01, 2022 is set as the moratorium deadline which, however, can be extended by decision of the Government of the Russian Federation.
Specifics of functioning of the employer's electronic personnel system
In accordance with the provisions of Article 22.1 of the Labor Code of the Russian Federation, document circulation in the field of labor relations may be arranged electronically by using the "Work in Russia" system or another information system of the employer, which makes it possible to ensure the signing of an electronic document in accordance with the requirements of this Code, the storage of an electronic document, as well as recording the fact of its receipt by the parties to labor relations (hereinafter referred to as the employer's information system). At the same time, access to the digital platform "Work in Russia" is provided, among other things, through a single portal of state and municipal services using the federal state information system "Unified Identification and Authentication System in the Infrastructure that Provides Information and Technological Interaction of Information Systems Used to Provide State and Municipal Services in Electronic Form". According to the position of the Federal Service for Labor and Employment (Rostrud), set out in Letter No. ПГ/19773-6-1 of Rostrud dated August 01, 2022, employers who have switched to electronic document management (EDM) and use their EDM systems shall also ensure the interaction of their EDM systems with the federal state information system "Unified Portal of State and Municipal Services (Functions)". Today, this position is the opinion of Rostrud, and the corresponding obligation for the employer is not enshrined in regulatory legal acts. It is worth reminding that in accordance with Decree No. 1192 of the Government of the Russian Federation dated July 01, 2022, starting from September 01, 2022 EDM systems of employers will be able to interact with the public services portal through a special information technology installed on the public services portal.
Limits for recovering expenses for education from employees
It is worth reminding that, in accordance with Article 198 of the Labor Code of the Russian Federation, an Employer is a legal entity (organization) has the right to conclude an apprenticeship agreement with a job seeker or with an employee of this organization for receiving education on-the-job or off-the-job. Read more
Unscheduled testing of the knowledge of occupational safety requirements
Since 1 September 2022, the Government Decree of the Russian Federation N 2464 dated 24 December 2021 on the Procedure of Labor Safety Training and Knowledge Testing of Labor Safety Requirements came into effect approving the New Labor Safety Training and Labor Safety Knowledge Testing Rules shall become effective. Read more