The Pension Fund has determined the procedure for notifying the PFR of the suspension and renewal of employment agreements with mobilized persons
In accordance with Decree No. 217п of the Board of the Pension Fund of the Russian Federation dated October 13, 2022, a notice of suspension and renewal of an employment agreement with an employee called up for mobilization who has entered into a contract for military service or voluntary assistance to the Armed Forces of the Russian Federation shall be submitted by filling in the appropriate items in the report on the Information about the Labor Activity of the Registered Person (SZV-TD), for which amendments have been made to resolution No. 730п of the Board of the Pension Fund dated December 25, 2019, establishing the form of the SZV-TD report. The obligation to notify the PFR of these events has been established since October 07, 2022.
Review of the judicial practice of the Supreme Court of the Russian Federation No. 2 (2022)
On October 12, 2022, the "Review of Judicial Practice of the Supreme Court of the Russian Federation No. 2 (2022)" was published, approved by the Presidium of the Supreme Court of the Russian Federation on October 12, 2022 (hereinafter referred to as the "Review").
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VAT on electronic services provided by foreign companies to Russian customers
Electronic services provided by foreign companies in Russia are subject to VAT. In order to exercise tax control over such transactions, the tax legislation provides for the obligation to tax register foreign organizations that are providers of electronic services or intermediaries involved in settlements.Read more
How many foreign employees can a company hire in Russia?
Government of the Russian Federation determines the permissible share of foreign employees annually (clause 5 of Article 18.1 of Federal Law No. 115-FZ of July 25, 2002 "On the Legal Status of Foreign Citizens in the Russian Federation") to regulate the attraction of foreign labor in certain types of economic activities, taking into account regional specifics of the labor market and employment of Russian citizens as a priority. In 2023, the permissible share of foreign employees engaged in certain types of activities in the territory of the Russian Federation will be the following number in the spheres (Resolution of the Government of the Russian Federation No. 1751 dated October 03, 2022):
- Vegetable growing - 50% of the total number of employees used by economic entities (this norm does not apply to the territory of the Udmurt Republic - 0%, Primorsky Krai - 40%, Astrakhan Oblast and Volgograd Oblast);
- Forestry and logging - 50% of the total number of employees used by economic entities (this norm does not apply to the territory of Primorsky Krai - 20%);
- Wood processing and production of wood and cork products, except furniture, straw products and weaving materials - 50% of the total number of employees used by economic entities;
- Construction - 80% of the total number of employees (this norm does not apply to the Republic of Buryatia, the Amur Region, the Republic of Dagestan - 50%, the Krasnodar Territory - 50% and the city of Moscow);
- Wholesale trade in wood raw materials and unprocessed timber - 50% of the total number of employees used by economic entities;
- Wholesale trade in lumber - 50% of the total number of employees used by business entities;
- Retail trade in alcoholic beverages and tobacco products in specialized stores - 15% of the total number of employees;
- Retail trade in medicines in specialized stores (pharmacies) - 0% of the total number of employees used by economic entities;
- Retail trade in non-stationary trade facilities and markets, as well as other retail trade outside stores, tents and markets - 0% of the total number of employees used by economic entities;
- Activity of other land passenger transportation - 24% of the total number of employees (this norm does not apply to the territory of Krasnodar Krai - 0% and Primorsky Krai - 15%, to business entities operating in the territory of the Udmurt Republic according to OKVED 49.31, 49.32 - 0%);
- Cargo transportation activities - 24% (this norm does not apply to the territory of Krasnodar Krai - 0% and Primorsky Krai - 10%);
- Real estate management for remuneration or on a contractual basis, as well as building and territory maintenance activities - 70% of the total number of employees;
- Other activities in the field of sports - 25% of the total number of employees.
Separately for the Ryazan region is set the permissible share for activities in the sphere of manufacturing production - 90%. In accordance with these maximum permissible shares employers must streamline their staff until 01.01.2023.
Expansion of the prosecutor's powers in the arbitration process
From October 18, 2022, amendments to the Commercial Procedural Code of the Russian Federation will come into force, according to which the powers of the prosecutor in the arbitration process will be expanded. [1] Read more
Clarification regarding the lifting of temporary restrictions on transport communication with foreign countries
On September 29, 2022, the official website of the Russian Ministry of Internal Affairs provides explanations for the removal of temporary restrictions on transport communication with foreign countries, previously imposed to limit the spread of a new coronavirus infection:
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Responsibilities of employers and guarantees for employees called up during partial mobilization
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State Duma of the Russian Federation adopted in the first reading the draft law "On Amending the Federal Law "On State Registration of Legal Entities and Individual Entrepreneurs" and Article 3 of the Federal Law “On Limited Liability Companies"
The draft law allows founders (members) to liquidate a non-functioning organization in a simplified manner. According to the information from the Ministry of Economic Development, which developed this bill, at the moment the procedure for liquidating a business takes up to a year, and the new procedure can reduce the liquidation process by almost three times - up to 3.5 months.
If the draft law is finally adopted, the law may enter into force on July 01, 2023.
The draft law proposes to introduce a simplified procedure for excluding small and medium-sized businesses from the Unified State Register of Legal Entities.
Members of limited liability companies will be able to decide on the termination of activities and send an application for exclusion from the Unified State Register of Legal Entities to the registering authority, and the mere resolution of members will be sufficient.
To submit an application, it will be possible either to notarize the authenticity of the signature of the legal entity members, or send an application to the registering authority in the form of an electronic document signed with enhanced qualified electronic signatures of all members.
The registering authority, within five business days from the date of receipt of the application, will decide on the upcoming exclusion and make an entry about the upcoming exclusion of the legal entity from the Unified State Register of Legal Entities, if at the time of making such a decision the following conditions are simultaneously met:
information about the legal entity is included in the unified register of small and medium-sized businesses;
a legal entity is not a VAT payer or is exempt from its calculation and payment;
the registering authority does not have information on the existence of settlements with creditors that have not been completed by the legal entity;
the Unified State Register of Legal Entities does not contain information about the legal entity in respect of which an entry was made about its unreliability;
the legal entity does not have an unfulfilled obligation to pay taxes, fees and other obligatory payments;
the legal entity does not own real estate and vehicles;
the legal entity is not in the process of liquidation, reorganization, exclusion from the Unified State Register of Legal Entities by decision of the registering authority.
In case of non-compliance with any of these conditions, the registering authority will notify applicants that it is impossible to exclude the legal entity from the Unified State Register of Legal Entities.
The decision on the forthcoming exclusion shall be published in the press.
Objections with supporting documents attached may be sent or submitted to the registering authority no later than three months from the date of publication of the decision on the forthcoming exclusion.
If no objections are received within the prescribed period, the legal entity will be excluded from the Unified State Register of Legal Entities.
A draft law has been published establishing control over compliance with anti-crisis measures and liability for their violation
According to the draft Federal Law "On Amendments to Article 4.2 of the Federal Law "On Measures to Influence (Counteract) the Unfriendly Actions of the United States of America and Other Foreign States" and Article 2 of the Federal Law "On State Control (Supervision) and Municipal Control in the Russian Federation" (prepared by the Ministry of Finance of Russia, project ID 02/04/09-22/00131470) (not included in the State Duma of the Federal Assembly of the Russian Federation, text as of September 16, 2022), it is planned:
- From July 01, 2023, to empower the Federal Tax Service and the Federal Customs Service with the authority to exercise control in the field of anti-crisis measures, in particular, to request documents for control. The control procedure and the procedure for submitting documents will be approved by the Government.
- To grant the authority to the Central Bank to control banks, non-credit financial institutions, etc.
- To establish penalties for violating the procedures established by anti-crisis measures: 20% to 40% of the amount of the transaction carried out with violations. If the transaction does not have a monetary value, the fine will be up to RUB 30 thousand, depending on the subject of the offense.
The Government Commission allowed the implementation of transactions for the alienation of real estate to foreign legal entities associated with unfriendly states
The Government Commission for the Control of Foreign Investments in the Russian Federation decided to allow residents to carry out (execute) transactions (operations) for the alienation of real estate:
to foreign legal entities associated with unfriendly states;
to legal entities that are under the control of foreign entities associated with unfriendly states, regardless of the place of their registration or the place of their primary business activities.
The permit is valid without a time limit.
Extract from minutes No. 85 of the meeting of the subcommittee of the Government Commission for the Control of Foreign Investments in the Russian Federation dated September 07, 2022 (communicated by the Ministry of Finance of Russia on September 13, 2022 No. 05-06-10/ВН-46769)