Risks of using incorrect OKVED codes for companies
OKVED (exact translation: All-Russian classifier of types of economic activity) is the Russian Classification of Economic Activities. When companies and individual entrepreneurs register with state authorities, they indicate their type of activity in accordance with this classification, and this information is recorded in the State Register of Legal Entities or State Register of Individual Entrepreneurs.
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VAT increase up to 20%. What needs to be done?
The VAT rate will increase from 18% to 20% from January 01, 2019. Transactions (sale of services, goods or work performance) which used to be taxed at 18% will be taxed at 20% from January 01, 2019.Read more
Personal income tax for foreign employees in Russia
When foreign nationals start working in Russia, they are often baffled by the calculation of income tax because it is dependent on criteria such as the type of work permit (work permit for highly qualified specialists or regular work permit), tax status in Russia and tax status in foreign nationals’ country of origin. We have outlined below the particularities of personal income tax for foreign employees in Russia.Read more
Agent VAT upon payments to foreign companies in Russia
Foreign companies often enter into contracts with their subsidiaries in Russia for provision of services such as, for example, management services, consulting services, information support, royalties, etc. In some cases, the Russian subsidiaries will be required to withhold agent VAT upon payment of fees for services rendered to their parent company.
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New OECD Automatic Exchange of Tax Information
New Law to Simplify the Exchange of International Tax Information
The Russian Ministry of Finance has drafted a bill intended to build a legal base for international automatic exchange of tax information and information on financial statements. Tax authorities will oversee this new system.