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
New restrictions for paying dividends and selling shares and real estate for owners and shareholders originating from states recognized by Russian authorities as unfriendly
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: 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
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
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 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.