Transfer pricing: the impact of expanding the list of offshore jurisdictions on the obligations of taxpayers conducting transactions with residents of offshore zones
The law on windfall tax has been passed by the State Duma
For companies whose average profit for 2021 and 2022 turned out to be higher than 1 billion rubles, a tax on super profits is introduced. According to the law, the payment will be 10% of the amount exceeding the profit for 2021-2022 over the indicators for 2018-2019.Read more
Features of Calculation and Payment of Personal Income Tax (PIT) from Rental Income for Employees, including Highly Qualified Specialists
1. "Payment of apartment rent for employees, including Highly Qualified Specialists (as well as non-residents), is generally subject to Personal Income Tax (PIT). It is considered as the employee's income in kind (paragraph 1, clause 2, Article 211 of the Tax Code of the Russian Federation, Letters of the Ministry of Finance of Russia dated January 14, 2019, No. 03-04-06/1153, January 23, 2018, No. 03-04-06/3201, January 12, 2018, No. 03-03-06/1/823, October 3, 2017, No. 03-04-06/64421, December 29, 2016, No. 03-04-05/79264).
The Ministry of Finance has updated the tax haven blacklist
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The deadlines for the collection of arrears on payments to the budget and the deadlines for the execution of requirements by the Federal Tax Service have been extended
According to Resolution No. 500 of the Government of the Russian Federation dated March 29, 2023, the maximum deadlines for sending demands for payment of arrears and making decisions on the collection of arrears have been extended by 6 months.
In addition, the Federal Tax Service of Russia has published information on its website stating that the deadlines for executing requirements sent to taxpayers in April will be extended to 1 month (instead of 8 days). Before issuing demands to personal account users and those who interact with the Federal Tax Service through telecommunications channels, references will be sent with a breakdown of the total amount of debt by types of taxes and payment deadlines. This will allow taxpayers to compare their data with information from the tax authority and pay the debt if it is confirmed. For example, in case of an error, a correct notice of advance payments can be submitted or an application for tracing the payment can be filed. Decisions on collection will only be made upon confirmation of the correctness of the taxpayer's negative balance. Additionally, from January 1 to June 30, 2023, penalties will not be charged in cases where the taxpayer made mistakes when forming the notification of calculated taxes or did not send it at all.
Overview of legislation changes - March 2023
Overview of the most important legislation changes - March 2023
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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
Possibility of remote work abroad, procedure for paying personal income tax and insurance premiums
In the remote work mode, the employee performs work outside the office, and interacts with the employer via the Internet. It does not matter how far from the location of the employer the place of work of the remote employee is located. There are no restrictions in this case, suggesting that the employee can work remotely while abroad.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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