Business Support Measures amid COVID-19

The Federal Tax Service will suspend field tax audits (enter into force on March 18)

Due to the spread of the coronavirus, all tax and customs control measures would be suspended, namely, field tax audits, planned field customs audits, seizures, inspections, interrogations, in which tax inspectors have to personally communicate with taxpayers.

The number of field tax audits will be reduced to the minimum, and only unplanned audits that are based on information on risks causing harm to the life and health of citizens, the occurrence of natural and man-made emergencies, audits that result in the issuance of permits, licenses, accreditation certificates, and other documents that have a permissive nature will be carried out.

Source: Order of the RF Government dated 18.03.2020 " Mikhail Mishustin gave instructions aimed, in particular, at suspending the appointment of field tax and planned field customs audits", Order of the Federal Tax Service dated 20.03.2020 № ЕД-7-2/181@

Tax holidays for tourism and air transport legal entities and a moratorium on filing bankruptcy applications (enter into force on March 18)

The Federal Tax Service is charged with ensuring:

  • providing taxpayers operating in tourism and air transport industries with "tax holidays" (deferred tax payments) by submitting, in established cases, requests for tax payment and social contributions no earlier than May 1, 2020, and refusing to charge late payment interest;
  • the possibility of introducing a moratorium on filing bankruptcy applications and establishing a procedure for restructuring debts of legal entities until May 1, 2020.

Source: Order of the RF Government dated 18.03.2020 "Mikhail Mishustin gave instructions aimed at providing deferred payment of taxes and insurance premiums in respect of taxpayers operating in the tourism and air transport industries, as well as ensuring the possibility of introducing a moratorium on filing bankruptcy applications"

Moratorium for small and medium-sized businesses on payment of insurance premiums and rental payments (planned for adoption)

Medium and small businesses will receive a three-month deferral period starting in March for paying social contributions and for paying lease payments in respect of leasing state or municipal property.

Source: http://government.ru/news/39221/

Deferred payment of taxes and fees for legal entities operating in cultural and sports industry (enter into force on March 20)

The Federal Tax Service is charged with ensuring provision of tax holidays for the payment of taxes and social contributions due before May 1, 2020, in respect of taxpayers engaged in activities in the field of sports, art, culture and cinematography, in accordance with the order of the RF Government dated March 18, 2020.

Source: http://government.ru/orders/selection/401/39230/

Changing the working regime of courts

Starting March 19 till April 10, 2020, the Russian courts are changing their working regime due to the coronavirus. In connection with the threat of spread of coronavirus infection in the territory of Russia the courts are suspended:

  • reception of citizens in courts;
  • submission of documents is recommended only through e-offices of courts or by post service;
  • access to courts for individuals who are not participants in legal proceedings.

Source: the Supreme Court Decision N 808 of 18.03.2020

Incentives for public procurement participants in connection with coronavirus (planned for adoption)

Suppliers affected by the current situation will be exempt from fines for violations of obligations under state contracts. In addition, the requirements for securing contracts with the participation of small business entities will be reduced.

Source: Transcript of the meeting of the coordinating Council for the fight against coronavirus on 16.03.2020 (http://government.ru/news/39164/ ), Information message of the Government and the Central Bank of the Russian Federation dated 17.03.2020 (http://government.ru/news/39183/ )

Measures to support medicines, tourism and transport industries (planned for adoption)

The Bank of Russia informs about measures designed to support manufacturers of medicines, as well as the tourism and transport industries in terms of the spread of coronavirus infection till September 30, 2020. In particular, it is planned:

  • to provide credit institutions with the opportunity to assess the quality of debt service, regardless of the assessment of the financial position of the borrower from the tourism and transport sectors for loans restructured due to a reduction in the borrower's income due to the coronavirus;
  • to give credit institutions an opportunity not to worsen the assessment of the financial performance of the sectors of tourism and transport for the purpose of provision for losses if the changes in financial performance caused by the coronavirus;
  • introduce a reduced risk factor of 70% for ruble-denominated credit requirements for organizations that produce medicines and medical devices;
  • reduce to zero the allowances to the risk coefficients for foreign currency loans provided to organizations that produce medicines and medical devices.

Source: information from the Bank of Russia dated 10.03.2020 "Comments of the Bank of Russia on temporary regulatory relief for banks in connection with the spread of coronavirus"

Other anti-crisis measures considered in the RF Government's plan in terms of coronavirus (planned for adoption)

  1. Compensation of income to citizens, individual entrepreneurs and self-employed who are quarantined due to the possible spread of a new coronavirus infection, including at the expense of employers or temporary disability lists.
  2. Reserving budget allocations for the provision of subventions from the Federal budget to the regional budgets for the provision of social benefits to unemployed citizens.
  3. Providing quarterly deferred tax payments for small and medium-sized businesses.
  4. Amendments to the legislation related to providing state-owned enterprises with the opportunity not to transfer funds to the budget for certain types of income.
  5. Postponing the payment of dividends for legal entities with state participation by 3-6 months.
  6. Increase in budget allocations for providing budget loans for the purpose of regional plans to ensure sustainable economic development and social stability in 2020
  7. Formation of an anti-crisis Fund in the amount of 300 billion rubles, including through optimization of budget expenditures.
  8. Provision information to legal entities and citizens about the measures taken through the taxpayer web-office.
  9. Amendments to the legislation regarding the interpretation of situations related to the spread of a new coronavirus infection as force majeure under government contracts.

Source: https://www.vedomosti.ru/economics/articles/2020/03/15/825250-plan-zaschiti

GET IN TOUCH

* mandatory fields

PERSONAL DATA SUBJECT’S CONSENT TO THE PERSONAL DATA PROCESSING

I agree with the processing of my personal data by JSC Mazars (registered office: floor 2, office 3, 5, bld. 19, Nizhny Susalny pereulok, 105064, Moscow), “Mazars Audit” LLC (registered office: floor 2, office 12, 5, bld. 19, Nizhny Susalny pereulok, 105064, Moscow), hereinafter together referred to as “Mazars Russia”, when I:
(1) Visit Mazars Russia website and use its functionality;
(2) Tick “I Agree” box when completing web forms of Mazars Russia;
By providing my consent, I authorize Mazars Russia to process my personal data indicated in the respective web forms of Mazars Russia as well as the data obtained during my website visits and use of its functionality.
Mazars Russia may process my personal data to achieve one or several purposes as follows:
(1) dealing with my requests (proposals, feedback, claims, acknowledgments) including transfer of my request to member firms of Mazars https://www.mazars.com/Home/About-us/Serving-our-clients-worldwide to which it may relate and providing informational support;
(2) building up a database of subscribers to newsletters sent out by Mazars Russia and other member firms of Mazars, and updates on events organized by Mazars Russia and/or other member firms of Mazars as well as conducting surveys by Mazars Russia and Mazars;
(3) providing service proposals by Mazars Russia and other member firms of Mazars.
I agree to processing of my personal data using both automated and non-automated means, namely to obtaining my personal data, as described above, recording, alignment, accumulation, storage, adaptation (updating, alteration), retrieval, use, transfer (transmission, making available), pseudonymization, restriction, erasure or destruction of my personal data.
Mazars Russia may transfer my personal data solely to the member firms of Mazars, which may include cross-border transfer of my personal data to countries that do not provide adequate protection for personal data subjects’ rights to their personal data.
My personal data with respect to which this consent is granted may include:
(1) Full name;
(2) Name of my employer;
(3) My job position;
(4) Contact email;
(5) Contact phone number
(6) Other business contact details, as I may wish to provide to Mazars Russia.

This Consent is valid as of its provision and continues until its withdrawal**.

**You may recall this Consent in accordance with Article 9 of Federal Law No. 152-FZ “On Personal Data” of 27.07.2006 by sending a written request to Mazars Russia.

Want to know more?

Related pages

photo-1584036561584-b03c19da874c.jpg

COVID-19 & Your Business

During this time of uncertainty and volatility, our stakeholders need a source of reliable information to help meet the challenges they face. Our office and the Group are closely monitoring the Coronavirus situation to be prepared and respond appropriately. Mazars is creating a series of useful insights written by our experts to offer advice, guidance and practical support to help business leaders to make complex decisions on a daily basis and keep their workforce and communities safe, while moving the business forward.

Tax 1 1600 per 900px.jpg

Tax Services

Understanding of Russian tax regulations and solving pure tax issues takes time – time which can be used more productively developing your business.