New application form for authorizations for transactions with non-residents and increased payments to the budget

On October 16, 2023, the official website of the Ministry of Finance published a new form required for submitting applications to the Government Commission for the issuance of permits for transactions with non-residents, the subject of which are stakes in Russian business entities.
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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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Dealing with accounts receivable

Many companies increasingly face the prospect that their partners cannot fulfill their obligations because of the difficult economic situation and issues related to accounts receivable became relevant to many of our clients.Read more

Collection accounts receivable court proceedings en konsu outsou

Collection of accounts receivable in court proceedings

Any commercial organization or individual entrepreneur carrying out business activities under contracts that do not provide for 100% prepayment, face a situation sooner or later where the counterparty has receivables, payment of which is not always possible to achieve on a voluntary basis.Read more

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

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

How to manage exchange rate differences and read P&L amid fluctuations in ruble exchange rate?

What effects do exchange rate differences have on profit and loss statements?

Financial statements are currently prepared without taking into consideration the most dangerous risks associated with exchange rate differences, and this can result in inaccurate representations of the financial condition of companies. Read more

Foreign currency hedging transactions

The Russian rouble collapsed in January 2016 to its lowest level ever.

Legal entities may be exposed to foreign currency fluctuation risk, particularly when a transaction is denominated in a foreign currency.

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Does every company need a Chief Accountant?

For many years traditional Russian accounting was based on the model of “one company – one Chief Accountant”, this issue provokes many questions. That’s why we decided to answer a frequently asked question if every company needs a Chief Accountant.
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