VAT
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VAT base rate increased from 18% to 20% At the same time, the 10% rate for some types of goods and services of social value has been preserved.
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From January 2019, foreign companies shall register with the Russian tax authorities and pay VAT independently when providing services to any customer, not just to individuals as it was before. Russian companies shall only be considered tax agents if they act as intermediaries in the sale of electronic services under contracts with foreign companies.
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Since July 2019, operations and services that are performed beyond Russia have been treated as taxable operations. VAT on goods, works and services purchased for such operations are deductible.
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Now, having submitted applications to the IFTS, the VAT related to warranty repair can be deducted.
Corporate Property Tax
Corporate movable property is no longer subject to taxation.
Profit tax
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Income received by the party (shareholder) upon withdrawal from the company or its liquidation was regarded as dividends, and losses were allowed to be written off.
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Funds received free of charge by an organisation as part of the monetary contribution previously made to the property of another company are exempt from tax.
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Equipment operated with the best available technology can be depreciated with a multiplying factor.
Other tax changes
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Participants in innovative research and technology projects are exempted from: VAT, income tax, property tax and land tax.
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Excise rates on tobacco products, cars, 5th class motor, diesel fuel and medium distillates have been increased.
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The list of excisable goods was expanded to include oil raw materials and dark marine fuel.
Changes in limits to classify transactions as controlled
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A new amount-based criterion has been identified for the purpose of classification of controlled transactions with a foreign related company (incl. through an independent formal intermediary). Now it is 60 million rubles. Previously, there was no amount-based threshold for these transactions, all transactions were recognised as controlled ones. This change will affect the taxation of transactions with group companies.
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The amount-based criterion has been increased for controlled transactions between Russian related companies. Now it is one billion rubles (until 2019 it was 100 or 60 million rubles, depending on the end of the transaction).
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The amount-based criterion has been decreased for controlled transactions between Russian related parties with involving an independent formal intermediary. Now it is 60 million rubles (until 2019 it was one billion, 100 or 60 million rubles, depending on the end of the transaction).
OTHER CHANGES:
