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Tax and legal alerts
Our newsletters focus on key changes on regulations in Russia.
Entry of HQS and their family members to Russia in 2021
On 30 December 2020, by Order of the Government of the Russian Federation No. 3675-r, family members accompanying foreign citizens - highly qualified specialists (HQS) are officially allowed to come to the territory of the Russian Federation.
New remote work regulations from 1 January 2021
The Federal Law dated 8 December 2020 No. 407-FZ (hereinafter, the “Law”) amends the Labour Code of the Russian Federation considerably through changes in regulation on remote work. Below are the main changes brought by the Law that will enter into force on 1 January 2021.
Important changes in the international tax law
Due to significant changes in Russian and international tax legislation, we would like to highlight their possible impact on existing holding structures. Under certain conditions, changes in legislation without proper adjustments could lead to a significant increase in overall tax burden and / or significant tax risks.
Departure of HQS and their families for Christmas and New Year - update
On 18 December, the official website of Rospotrebnadzor posted the information on the procedure of temporary departure from the Russian Federation for Christmas and New Year's holidays of foreign citizens classified as highly qualified specialists and the members of their families, with their subsequent return.
Introduction of a progressive PIT rate
Federal Law No. 372-FZ of 23 November 2020 amends the current legislation of the Russian Federation on taxation of individuals. Thus, from 1 January 2021 a progressive personal income tax rate is introduced.
New registration forms for legal entities and individual entrepreneurs
On 25 November 2020, the Order of FTS (Federal Tax Service) of Russia dated 31.08.2020 No. ED-7-14/617@ “On approval of forms and requirements to execution of documents submitted to the registering body during state registration of legal entities, individual entrepreneurs and peasant (farm) holdings” (Registered in Ministry of Justice of the Russian Federation on 15.09.2020 No. 59872) (hereinafter - “Order”) came into force.
Amendments to the Controlled Foreign Company legislation
On 9 November 2020, Federal Law No. 368-FZ was adopted. The Law introduces amendments to the Controlled Foreign Company (CFC) legislation, in particular allowing individuals to pay RUB 5 000 000 per year for all their CFCs, while not calculating profits and taxes for each of them (hereinafter – “the Special Regime”), as well as introducing new requirements and tightened sanctions.
Significant changes in the Russian Tax Code
On November 23, Federal law № 374-FZ of 23.11.2020 "On amendments to the parts one and two of the Tax Code of the Russian Federation and certain legislative acts of the Russian Federation" (hereafter - the "Law") was adopted. The Law provides for a large number of amendments.
HQS (highly qualified specialists) entry into the Russian Federation under the COVID-19 pandemic restrictions
We kindly remind you that the restrictions on entry into the Russian Federation for foreign citizens are still in force. These restrictions are provided by the order of the government of the Russian Federation dated March 16, 2020 No. 635-r (as amended by the Government order dated 14.10.2020 No. 2649-r).
