China signs a new tax treaty with Russia
China and Russia entered into a new double taxation treaty which was signed on October 13,
See MoreRussia: VAT treatment of electronic services
The Finance Ministry (MoF) has issued a Letter No. 03-07-08/35579 on 21 July 2014 clarifying the VAT treatment of services for giving entrance to an electronic database supplied by a foreign company to a Russian company. As a result, the MoF
See MoreRussia: VAT free event and exhibitions for foreigners
The Finance Ministry of Russia has established that exhibition, live event and conference services provider in Russia to non-Russian customers are free from Russian VAT. But according to EU and the OECD Guidelines, VAT should be charged on live
See MoreRussia: Obligatory notification for dual nationality or foreign residence permits requires
Russia acted out a law that effective from 4 August 2014 requiring Russian citizens to give notice to the Federal Migration Service (FMS) where they have dual nationality, or foreign residence permits. For Russian citizens who already have dual
See MoreRussia: Revised version of the draft law publishes
The Ministry of Finance in Russia has released a significantly revised version of the draft law on the package of tax initiatives on September 2, 2014. This contains a number of significant changes affecting such matters as exclusions from
See MoreRussia: Zero VAT rate applicable to freight services provided by certain vessels
The Finance Ministry (MoF) has issued Letter No. 03-07-РЗ/32218 on July 3, 2014 describing the VAT rate applicable to the provision of services of seaborne vessels and combined navigation vessels based on time charter agreements for the reason of
See MoreRussia: Simplification in VAT invoice
Businesses those are VAT registered in Russia will no need to deliver consumers along with full VAT receipts from 1st October 2014. The VAT invoices in Russia must be delivered within 5 days of the provision of the service or goods. This change will
See MoreRussia: Interest derived by a foreign company is subject to CIT
The Finance Ministry has released Letter No. 03-00-08/2/29954 that describes the tax treatment applicable to interest paid by a Russian resident individual to a foreign company on the basis of loan agreement. In accordance with article 246 of tax
See MoreRussia: No VAT on foreign IP sales
Intellectual property means the rights or license for copyrights, trademarks and patents to apply. According to the Federal Tax Service, the sales for Intellectual Property (IP) by a foreign company to a Russian company for apply outside of Russia
See MoreRussia: New model for TIEA adopted
The Russian government adopted Ordinance No. 805 on August 14, 2014 that permitted the model for the tax information exchange agreement (TIEA) to be finished by Russia with foreign states. The TIEA is based on the model agreement on exchange of
See MoreRussia: MoF declares tax treatment of royalties when paid to a partnership
According to the Germany-Russia Income and Capital Tax Treaty, the Finance Ministry has declared a Letter 03-08-RZ/38351 describing the tax treatment applicable to royalties paid by a Russian resident to a German limited liability partnership and
See MoreRussia: MoF clarified that exemption of interest is accepted upon confirmation
On the basis based of Russia-United Kingdom Income Tax Treaty, the Ministry of Finance released Letter No. 03-04-05/24803 issued on May 23, 2014 regarding the tax treatment of interest paid by a Russian company to an individual resident in UK.
See MoreRussia: Introduce tariffs on Ukrainian products
On the basis of provisions place out by the Vienna Convention on international treaties, Russia is looking for chances to initiate protection measures in its trade relations with Ukraine. Ukraine has signed the economic part of the Ukraine-European
See MoreRussia: Revised draft changes related to introduction of CFC rules
The Ministry of Finance has released a revised version of the draft law regarding introduction of CFC rules. The important changes of the revised draft law are given below: • Concepts regarding “Beneficial owner” and “actual right to receive
See MoreBRICS nations agree to create BRICS bank
Leaders of the BRICS group of emerging powers on Tuesday created a Shanghai-based new international development bank and multi-billion emergency lending pools. The development bank will have initial capital of $50 billion that could rise to $100
See MoreRussia – The Central Bank issued FATCA guidance
The Central Bank of Russia has issued Bulletin No. 64 (1542) on July 10, 2014 regarding the rules for implementing the FATCA legislation. Central Bank’s guidance is given below: “Punitive withholding” within the Russian territory is not
See MoreRussia: Declares tax treatment applicable to contractual penalties
The Russian Finance Ministry released Letter No. GD-4-3/12689 issued on July 3, 2014, whereby it declared the taxation of contractual penalties paid by a Russian company to a Cypriot company. The Ministry of Finance referred to article 309 of the
See MoreRussia: Applicability of thin capitalization rules under certain conditions
The Ministry of Finance has issued Letter No. 03-08-05/9669 on May 6, 2014 that clarifies the application of thin capitalization rules to the interest paid by a Russian company (borrower) to another Russian company (lender) under a controlled loan
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