Russia introduces reduced rate for IP income
On 31 August 2021, the Federal Tax Service has published a clarification. Accordingly, from 2 August 2021, regions of Russia may set a reduced corporate income tax rate for the income received by taxpayers from the provision of rights to use the
See MoreRussia: MOF clarifies the deductibility of R&D expenses for CIT purposes
The Russian Ministry of Finance (MoF) recently issued a Guidance Letter No. 03-03-06/1/49733, published on July 26, 2021. The MoF noted that R&D expenditure was completed in the reporting period (tax period) in which this R&D was completed
See MoreRussia increases the Interest rate from July 2021
On 23 July 2021, the Russian Central Bank announced the decision to increase the key rate from 5.5% to 6.5% with effect from 26 July 2021. For tax purposes, the key rate is important in relation to the safe harbor rates for interest income and
See MoreRussia updates mandatory audit thresholds
On 29 December 2020, Russia has published Federal Law No 476-FZ which amended the thresholds for mandatory tax audit with effect from 1 January 2021. The Federal Law increased the turnover threshold in the previous year to RUB 800 million
See MoreRussia declares country names for exchange of CbC Report
On 10 December 2020, Russia has published an order of the Federal Tax Service amending the list of Territories and States with which Russia will automatically exchange Country-by-Country (CbC) reports. The Order entered into force on 21
See MoreNew judgement of the Russian court on beneficial ownership
Roustam VakhitovInternational Tax PartnerCrowe Expertiza+3 164 082 6427roustam.vakhitov@crowerus.ru On 14 December 2020 the Moscow State Arbitration Court released its judgement on case involving Dutch and Russian companies of Kinross group,
See MoreRussia’s possible termination of DTT with the Netherlands
Roustam VakhitovInternational Tax PartnerCrowe Expertiza+3 164 082 6427roustam.vakhitov@crowerus.ru On 4 December 2020 the Russian Ministry of Finance announced initiation of the termination of DTT with the Netherlands due to absence of process
See MoreRussia declares tax relief measures for SME sector
On 12 November 2020, in response to Covid-19 pandemic the Government of Russia has declared the issuance of Decree No. 1791, which extends certain tax relief measures related to SME sector. The relief measures include the deferral of advance
See MoreRussia and Malta sign a protocol to amend the double tax treaty
On 1 October, the Russian Ministry of Finance reported that the Protocol to Russia - Malta DTT has been signed. In general dividend and interest WHT increases to 15%. However, there is a number of exceptions and in some cases current 5% dividend
See MoreRussia: Federal Tax Service proposes to remove Turkey and Nigeria from the list of non-cooperative jurisdictions
The Russian Federal Tax Service proposes to remove Turkey and Nigeria from the list of non-cooperative jurisdictions that do not automatically exchange tax related information with Russia. The proposal was made for the purpose of updating the list
See MoreHong Kong and Russia sign an agreement for the exchange of CbC report
On 3 September 2020, the Russian Federal Tax Service has announced that Hong Kong and Russia signed an agreement on the exchange of Country-by-Country (CbC) reports for the 2017 and 2018 reporting years. For reporting fiscal years beginning on or
See MoreRussia: Tax audit guidelines on intra-group service expenses
The federal tax service of Russia has published guidance for lower tax authorities to follow in investigating the reasonableness of expenses claimed for intra-group services. The tax authorities did not have a unified approach to verifying
See MoreRussia declares reduced rate for IT companies
On 31 July 2020, Russia has published Federal Law No. 265-FZ in the Official Gazette introducing "ultra-low tax regime" for IT companies, applies from 1 January 2021. The law provides following major benefits for qualifying IT
See MoreRussia aims to introduce fixed tax of RUB 5 million on CFC income
The government of Russia is planning several tax measures to be introduced in 2021 including an increased 15% tax rate applies on high-earning individuals and reduced 3% tax rate on Information Technology enterprises. In addition to these
See MoreRussia: Draft law to revise APA procedures
In March 2020, the Russian Ministry of Finance (MoF) released an amended version of a draft law to improve tax control over prices and procedure for entering into advanced pricing agreements (APA). The draft measures are expected to be adopted in
See MoreRussia announces tax measures amid COVID-19 pandemic
On 17 March 2020, the Ministry of Finance (MoF) of Russia announced several tax measures in response to the COVID-19 pandemic. The key tax measures are following: Extended tax payments deadline to 3 months for enterprises of tourism
See MoreRussia amends WHT return filing deadline
On 5 February 2020, Russian Federal Tax Service published a notice amending the deadline for filing of 2019 withholding tax (WHT) returns by tax agents. The notice have been in force since 1 January 2020, the WHT returns are required to file
See MoreRussia amends penalty provision for tax evasion
On 26 December 2019, the Russian President introduced draft Law no. 871811-7 revising the thresholds for the tax evasion committed by legal and natural persons. According to the draft Law, the tax evasion thresholds for criminal liability have been
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