taxportal

Russian legislative body is discussing amendments to the Tax Code stipulating requirements for documented outlays (article 252 of the Tax Code).

 NOTE: Foreign organizations are subject to profit tax in Russia. The object of taxation is as follows: 

 Meanwhile there are three main requirements for the expenditures to be recognized as outlays:

Although according to the Russian Tax Code, all reasonable and documented expenses can be deducted from taxable income, there are many tax risks for foreign organization. It’s difficult to justify some expenses. Russian State Duma is discussing a bill specifying the requirements for basic documents. When unauthentic information is contained in basic documents (e.g., incorrect name, address, taxpayer's identification number of the supplier or his agent), outgoings will be regarded as undocumented. With our help, you will be able to establish and implement effective tax risk management.

Russian State Duma is debating a bill amending the Federal Law "On Joint Stock Companies" that will ensure equal rights of shareholders to receive dividends. The current version determines that the period for the payment of annual dividends is determined by a company charter or by a decision of the general shareholders meeting on the payment of annual dividends. If the payment date for annual dividends is designated neither by the company charter nor by a decision of the general shareholders meeting, annual dividends must be paid within 60 days of the decision to pay them. This allows some companies to pay dividends first to the principal shareholders. The bill would be required to pay dividends to all shareholders in the same class simultaneously and no exemptions would be available.

Besides amendments to the civil law, it is necessary to take into account also tax law provisions. Thus there are three different Profit Tax rates on dividends:

The tax of 0% applies to dividends paid by Russian and foreign companies in case the following criteria are met on a record date: 

In order to apply the tax rate of 0% to dividends that will be paid until 2010 the acquisition cost of the shares in the charter capital must exceed RUR 500 mln. (approx. $16,2 mln.). But this requirement will not be applied beginning from 1 January 2011.

The optimal structure of a transaction often requires specialist advice. Efficient transaction structuring from tax, legal and financial perspectives is key to successful deal close. We offer a complete line of services depending on your needs and requirements. From legal structuring to consulting in tax controversy matters, our team will help you to reduce legal and tax risks.

First, it enables taxpayers to use e-invoicing. An e-invoice may be used by common consent of contractors and under a condition of availability of compatible technical means for appropriate receiving and processing of e-invoices.

Second, an e-invoice is to be signed by means of a safe electronic signature by CEO (or individual entrepreneur), or other persons authorized by order or power of attorney.

Third, the procedure of e-invoicing is to be regulated by the Ministry of Finance of Russia. The formats of e-invoices, registers of received and submitted e-invoices, purchase and sale books will be determined by the Federal Tax Service.

As noticed in the text of the foregoing law the described amendments will come into force after forms of all the documents listed above are approved by the Government of the Russian Federation.

Thereby the procedure of e-invoicing is still not introduced into the practice and the precise date of its coming into force is not announced by the legislative bodies.

The law permitting e-invoicing has been at last adopted by the Russian legislative body. New wording of Paragraph 1 of Article 169 of the Tax Code allow making invoice not only on paper but in electronic form too. The e-invoice is signed by means of a safe electronic signature by CEO (or individual entrepreneurs), or other persons authorized by order or power of attorney. In addition to e-invoicing is planned the widespread use of electronic documents in the relations between tax authorities and taxpayers, banks, registration authorities (Download DOC Version – 355kB).

Correct drawing up of a written invoice is still very important. Thus, stamped signature on an invoice does not allow deducting input VAT since Article 169 of the Tax Code does not provide for "substitute" personal signatures on the invoices. This position is confirmed in a letter from the Ministry of Finance of the Russian Federation № 03-07-09/33, dated 1 June 2010. However, it is also risky to affix a stamped signature on basic documents, powers of attorney and contracts.

Nevertheless, stamped signature is appropriate for some papers relating to import and export such as different kinds of bills of lading and waybills. This is stated in a letter from the Federal Tax Service of Russia № SHS-22-3/660 @, dated 21 August 2009.

Meanwhile, import of goods is linked to cumbersome procedure for issuance of shipping documents requiring specialized knowledge and experience. Qualified services of customs clearance and delivery will help you to avoid many problems with the operation and sale of imported products in the Russian Federation. We are offering consulting services for documenting the transport of goods in accordance with the requirements of Russian civil and tax law. We can also help you to avoid tax risks of importing goods under the contracts of commission or agency or any other similar contracts.

Our contacts:
website: http://www.taxportal.ru/
e-mail:    taxportal@mail.ru
                taxportalrus@gmail.com

ICQ:        307776817
                594557095
                493645352
Skype
Phone:    7 495 664-32-52
Office:     121351, Moscow (Russia), Vatutina Str, 12