Tax law changes effective August 31, 2023

From August 31, 2023, a number of changes in tax legislation come into force, which may affect many taxpayers.Read more

Dividend payout selling shares companies and real estate en kons

Paying dividends, selling shares and real estate by owners and shareholders from the states recognized by Russian authorities as unfriendly

Decree No. 618 introduced a restriction on transactions with shares of Russian LLCs owned directly or indirectly by unfriendly residents, entailing directly and (or) indirectly the establishment, change or termination of the rights of ownership, use and (or) disposal of shares in authorized capitals of limited liability companies (with the exception of credit institutions and non-credit financial institutions) or other rights that make it possible to determine the conditions for managing such limited liability companies and (or) the conditions for their entrepreneurial activities. The list of unfriendly states was approved by Decree No. 430-р. Permit to make transactions specified in Decree 618 shall be issued by the Government Commission for Control of Foreign Investments in the Russian Federation in accordance with the Rules approved by Decree No. 295 of the Government of the Russian Federation dated March 06, 2022.

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Simplification of cash transactions between Russian and foreign participants in foreign economic activity

The Ministry of Finance has prepared a draft resolution aimed at providing residents with the opportunity to receive cash from non-residents under export contracts as advance payments, as well as the right for residents to choose the authorized bank for the sale of foreign currency with subsequent crediting not only in Russian currency, but also in other foreign currencies.
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How to pay dividends konsu legal financial consulting russia kazakhstan cis

How to pay dividends: requirements, procedures and documents

One of the main goals of creating a legal entity is to make a profit from its activities. However, in order to receive income in the form of dividends, it is not enough to have positive financial results, it is also necessary to resolve correctly the issue of formalizing their payment. In practice, quite often there are disputes concerning the procedure, timing and grounds for paying dividends. The most common of them are discussed in this article.Read more

Vat on electronic services provided by foreign companies to russian customers konsu consulting

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

Negative net assets consequences for companies en konsu outsour

Negative net assets. Consequences for companies

If a company is unprofitable for several years, it might end up with negative net assets. We describe below the possible consequences of negative net assets.
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Tax clause way protecting property interests from en konsu outso

Tax clause as a way of protecting property interests from counterparties’ unlawful actions

To meet the requirements of Article 54.1 of the Russian Tax Code, taxpayers must exercise “due diligence” when choosing counterparties. Tax risks will arise for companies if their counterparties violate tax law, so the Federal Tax Service recommends including a tax clause in contracts to reduce such risks.Read more

Business activity forms for foreign companies in Russia

When setting up a subsidiary/company in Russia, foreign companies need to choose the right type of legal entity/business form for their business in Russia.

Our table shows the types of legal entities/business forms that foreign companies can set up in Russia, comparing the following parameters: general information, registration, registration fees, ownership requirements, legal address, assets, activity, mandatory corporate procedures, reporting, liability, foundation documents, additional procedures, antimonopoly regulations, and management.

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