Consequences of suspension of provisions of double taxation avoidance agreements with Finland
On August 8, 2023, Presidential Decree No. 585 of Russia was published and came into effect, suspending the provisions of certain international treaties on taxation issues with a number of countries, including Poland, the United States, Sweden, the United Kingdom, Norway, Finland, Germany, France, and Japan.
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Provisions of international treaties on double taxation have been suspended
In accordance with the Decree of the President of the Russian Federation dated August 8, 2023, No. 585, the operation of a number of international agreements between Russia and other countries on the avoidance of double taxation (DTAs) has been suspended. Read more
Transfer pricing: the impact of expanding the list of offshore jurisdictions on the obligations of taxpayers conducting transactions with residents of offshore zones
The law on taxation of incomes of employees working remotely from abroad has been passed by the State Duma
Employees who work for Russian companies remotely under both labor contracts and civil-law contracts (such as civil-law agreements) will pay a personal income tax (PIT) at a rate of 13% (or 15% for high incomes), regardless of their tax residency.Read more
The law on windfall tax has been passed by the State Duma
For companies whose average profit for 2021 and 2022 turned out to be higher than 1 billion rubles, a tax on super profits is introduced. According to the law, the payment will be 10% of the amount exceeding the profit for 2021-2022 over the indicators for 2018-2019.Read more
The government commission has updated the list of conditions for issuing permits to foreigners from unfriendly states to engage in transactions with shares and stakes of Russian companies
The Ministry of Finance of Russia has published an excerpt from the decision of the subcommittee of the Government Commission on Control over Foreign Investments in the Russian Federation dated July 7, 2023, No. 171/5, which updates the list of conditions for issuing permits to foreign nationals from unfriendly states to conduct transactions involving the sale of shares and stakes in Russian companies.
Features of Calculation and Payment of Personal Income Tax (PIT) from Rental Income for Employees, including Highly Qualified Specialists
1. "Payment of apartment rent for employees, including Highly Qualified Specialists (as well as non-residents), is generally subject to Personal Income Tax (PIT). It is considered as the employee's income in kind (paragraph 1, clause 2, Article 211 of the Tax Code of the Russian Federation, Letters of the Ministry of Finance of Russia dated January 14, 2019, No. 03-04-06/1153, January 23, 2018, No. 03-04-06/3201, January 12, 2018, No. 03-03-06/1/823, October 3, 2017, No. 03-04-06/64421, December 29, 2016, No. 03-04-05/79264).
Summer Business Meeting of the Russian-German Chamber of Commerce in Moscow
Konsu Company sponsored the Summer Business Meeting of the Chamber of Commerce. The evening’s guests had productive meetings with representatives of member companies, partners, and clients of the Russian-German Chamber of Commerce, and participated in exchanging opinions on current topics in the Business Stand-up format.
We thank the Russian-German Chamber of Commerce for the well-organized event.
Is it necessary for companies to conduct salary indexation in 2023 and what factors should they take into account?
What is indexation
Salary indexing is the increase in employee wages in accordance with the rise in prices. Indexing the salary level is an obligation, not a right, of the company. This is stated in Article 130 of the Labor Code. The Supreme Court also indicates this in the definition of 08.04.2019 No. 89-KG18-14.
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