Main amendments of Russian legislation on taxation and revenue effective as of 2015

Currently the Russian government's top priority in taxation policies is further improvement of taxation system in the Russian Federation. Implementation of those improvements shall cover adjustment of existing taxation system, mobilization of additional revenue by means of tax administering improvement, reduction of shadow economy, and withdrawal of superprofits from benevolent foreign economy conditions into the state budget. The short-term perspective shall see retention of tax burden on non-raw sectors of economy where, according to experts, its optimal level is attained. In relation to the abovementioned, no significant amendments are to be introduced to the taxation system structure in the short run.

The following alterations to taxation administering should be highlighted in the first place:

- introduction of universal requirements for application of banking guarantee in taxation legal relations;

- introduction of banks' obligation to inform taxation entities of newly-opened accounts of natural persons, as well as their obligation to provide data on those accounts;

- introduction of an option for taxation services to send inquiries to a tax-payer via electronic communication means, and determination of possibility to suspend operations on the tax-payer's accounds should such inquiries return no reply;

- introduction of an obligation to submit VAT declarations in electronic form, as well as to submit invoice register in electronic form along with tax statement on VAT.

Works targeted on development of electronic document circulation carry on.

Main amendments of taxation system about to become effective in the years coming will be targeted at the following:

• stimulation of micro-enterpreneurship development;
• establishment of special conditions for enterpreneurship in social and economic advancement areas at the Far East and Eastern Siberia with expansion of this region to the Republic of Khakasia and Krasnoyarsk Kray;
• "de-offshorization" of Russian economy, including that via establishment of institution for controlled foreign companies, revelation of information on benefitiary owners, improvement of information interaction internationally, and introduction of a ‘tax residency' concept for legal persons;
• elimination of export development obstacles;
• simplification of LLC registration procedures (exclusive of crediting, insurance and other financial organizations);

Apart from that, in order to increase efficiency of the taxation system, the following is planned:

• reject the most of federal tax remissions on regional and local taxes, and introduce a new principle for remission establishment via assessment of their effectiveness and determination of their validity term;
• considering the prevailing economy trends, index excises (including the continuing process of negotiations on harmonization of excise rates on tobacco products in the states of the Customs Union);
• consider the issue on introducing tax remissions for projects of top priority with participation of foreign investors in gas production and transportation;
• provide tax preferences for development of tourism and some other industries;
• as of 2015, introduction of new real principles for taxation of natural persons' real estate and revenue from its sale (switching to tax calculation from cadaster cost of taxed items, reduction of personal income tax for selling of specific types of real estate regardless of ownership duration etc.);

Main alterations to taxation of organizations as of 2015 in detail

Part One of the Russian Tax Code (RTC)

• Procedure for electronic document circulation with tax services tightened

As of January 1st, 2015, organizatios subject to submitting of tax statemnents in electronic form shall provide acceptance of requests to submit documents and clarifications, and notifications on summoning to the tax entity from the tax service. Within six days upon receipt of any of those documents an organization shall send a reception confirmation to the tax service. Should the confirmation fails to be sent within the established term the tax service can suspend the organization's bank account (items 2, 5 of Clause 10 Of Law d.d. June 28th,  2013  No. 134-FZ)

• A new justification for suspension of operations on a tax-payer's accounts introduced

As of January 1st, 2015, a new edition of item 3 of clause 76 of the Russian Tax Code is introduced stating a right of a tax entity to freeze a tax-payer's account and suspend transactions of his/her electronic monetary assents should a tax statement fails to be provided within 10 days subsequent to the final term provided for the submitting.

Starting January 1st, 2015, a tax entity also can suspend operations on a tax-payer's accounts in a bank, and transactions of his/her electronic monetary assets should an obligation to submit a confirmation of acceptance of any of the following documents fails to be fulfilled:

- requests to submit documents (item 1 of Clause 93 of RTC, items 2, 4 of Clause 93.1 of RTC);

- requests to submit clarification (item 3 of Clause 88 of RTC);

- notifications of summon to a tax entity (sub-item 4 of item 1 of Clause 31 of RTC).

Head/Deputy head of a tax entity can make respective decision should the tax-payer fails to submit the confirmation within 10 working days as of expiration of the submitting term (sub-item 2 item 3 Clause 76 of RTC). It should be reminded that the term for submitting of electronic confirmation comprisesw six working days as of the date of the documents' sending by a tax entity (item 5.1 of Clause 23 of RTC).

As of January 1st, 2015, as per subclause 1 item 3 of Clause 76 of RTC a decision to suspend operations on bank accounts and transactions of electronic monetary assets may be made within three years as of the date of expiration of 10 working days following the expiration of the established term for statement submitting.

• Procedure for desk audit of VAT statement tightened

As of January 1st, 2015, they expand the list for occasions when a tax entity can demand documents from a tax-payer during a duty tax audit.

As per item 8.1 of Clause 88 of RTC (new edition) a tax inspection can require for invoices, primary instruments and other documents related to operations information on which is stated in VAT statement in the following instances:

- there are contradictions in information on operations contained in VAT statement;

- there is inconsistency in information on operations contained in the VAT statement submitted by the tax-payer, information on the said operations reflected in a VAT statement submitted to the inspection by another tax-payer or another person obliged to submit such statements;

- there is inconsistence in information on operations contained in the VAT statement submitted by the tax-payer, information on the said operations reflected in received/issued invoices register submitted to a tax entity by a person obliged to do so as per chapter 21 of RTC.

A tax entity can request for such documents only if the revealed inconsistency and discrepancy indicate reduction of VAT to be paid or of overstatement of tax reimbursement amount.

• A tax entity can inspect territories, premises, documents and items during desk audit of VAT statement

The inspection shall be carried out as per reasonable decree by an officer of a tax entity performing the inspection.

• A natural person must inform the tax entity of taxation items he/she does not receive notifications of

As of January 1st, 2015, a new obligation for natural persons is introduced: they shall inform the tax inspection of items subject to taxation under transport tax, land tax, and property tax should the tax payer never received any notifications and never paid taxes throughout the whole period of ownership of the abovementioned real estate or transportation means (item 2.1 of clause 23 of RTC).

• Expiration of the term for making a decision on inspection of controlled negotiations concluded in 2013

On December 31st, 2015, expires a term during which a decision to perform an inspection of controlled negotiations concluded in 2013 as for their conformance of the applied prices to market ones (paragrah 3 of part 8 of clause 4 of Federal Law No.227-FZ d.d. 18.07.2011). Negotiations concluded in 2013 are the negotiations, profits and/or expenses on which have been recognized as per chapter 25 of RTC in 2013.

• Inspections may withdraw arrears from accounts without respective court decrees (items 5 and 6 of Clause 1 Of Law d.d. 4 November 2014 No. 347-FZ)

Court decree is required only for arrears exceeding 5 million roubles.

• In case of operating account suspension by a tax entity, banks cannot both open new accounts and accept assets for deposits and endowment from the organization in question (item 10 of clause 1 of Law No.347-FZ d.d. 4 November, 2014).
• Additional information shall be submitted to tax entities (item 4 of clause 1 of Law d.d. 24 November 2014)

– on participation in all Russian and foreign organization should the share exceeds 10 percent;

– on entity of foreign structures without establishment of a legal person, as well as of control over them;

– on controlled foreign organizations.

• Control of revenue from off-shore companies introduced (item 5 of clause 1 of Law No. 376-FZ d.d. 24 November, 2014)

New chapter 3.4 introduces a concept of controlled foreign companies and the persons in control. A procedure for taxation of revenues from the controlled foreign companies is established.

• Procedure for tax registration of foreign organizations' subdivision changes (Subclause «а» of item 15 of Clause 1 Of Law d.d. 4 November 2014  No. 347-FZ)

As of January 1st, 2015, foreign organizations are released from obligation to submit statements of tax registration (or de-registration) of their certified affiliations and agencies to a tax entity. The entity will register (or de-register) them by its own efforts basing on the data from state register. As for other subdivisions of foreign organizations, the procedure for registration and de-registration remains the same.

• Changes in regulations for determination or property location (Subclause «b» of item 15 Clause 1 Of Law d.d. 4 November 2014  No. 347-FZ)

As of January 1st, 2015, place of state registration of waterborne crafts is deemed their location. Place of aircrafts' owner is deemed their location.

• A new type of tax control – taxation monitoring – is introduced (item 8 of Clause 1 Of Law d.d. 4 November 2014  No. 348-FZ)

Within the taxation monotoring process, the entity inspects promtness and timeliness of tax payments. Taxation monitoring allows coordinating issues of charging of taxes and dues with the tax entity, as well as avoiding penalties for arrear sums in case of observance of the tax entity's opinion, avoiding desk audit of statements and field audits for the period covered by the monitoring. Taxation monitoring is performed only for organizations:

- total amount of taxes for which shall not be less than 300 million roubles;

- whose revenue shall not be less than 3 billion roubles;

- overall assets cost shall be equal to or exceed 3 billion roubles.

Taxation monitoring is performed under a statement from an organization. Terms of conduction: from January 1st of current year to October 1st of the following year. Subsequent to the monitoring's findings, the tax entity composes a reasonable opinion on calculation of taxes which the organization can agree or disagree with.

• Responsibility of persons in control established (items 13 & 15 of Clause 1 Of Law d.d. 24 November 2014  No. 376-FZ)

As of January 1st, 2015, a person in control is deemed responsible in case of failure to submit financial accounts and auditor conclusion along with the statement (penalty of 100,000 roubles), failure to include the revenue part of the controlled foreign organization in the taxation base (penalty of 20% of unpaid taxes, but not less than 100,000 roubles), failure to timely notify the tax entity of controlled foreign organizations (penalty of 100,000 per each foreign organization)

• Taxation respobsibility for foreign organizations owning real estate objects in Russia introduced (item 14 of Clause 1 Of Law d.d. 24 November 2014  No. 376-FZ)

As of January 1st, 2015, foreign organizations having real estate must inform of their participants (founders) in tax entities for location area of the real estate. Violation of that requirement induces a penalty maximum amount of which equals to the property tax for the real estate item. Particular amount of the penalty is determined from share of the participant (founder) information of whom had not been submitted to the tax entity.

Part Two of the Russian Tax Code

Revenue Tax

• Procedure for tax accounting of currency and sum differences changed (items 5–16 of Clause 1 Of Law d.d. 20 April 2014  No. 81-FZ)

As of January 1st, 2015, Tax Code excludes the concept of ‘sum differences' and specific rules for their accounting. Now operations in foreign currency (conventional items) payments under which are performed in roubles, alteration of currency exchange rate shall be reflected as per the same procedure as currency differences. Depending on what happened first, requirements (obligations) in foreign currency (conventional items) subject to paymein in roubles will be re-calculated to roubles:

• For the date of property rights passing;
• For the date of expiration of requirements (obligations);
• For the last day of each month.

Re-calculation shall be performed either per official exchange rate of the Bank of Russia, or (if otherwise stipulated by the parties to the deal) per exchange rate as provided in the contract.

• Procedure for accounting expenses for procurement of non-amortized assets changed (Subclause «а» of item 7 of Clause 1 Of Law d.d. 20 April 2014  No. 81-FZ)

As of January 1st, 2015, an organization can independently determine the procedure for deduction of material expenses considering terms of assets' application and other economic parameters. I.e., cost of low-valued item may be deduced for several accounting periods, not only simultaneously (as compared to that before January 1st, 2015)

• Donated assets realization revenue accountance procedure changed (Subclause «b» of item 7 of Clause 1 Of Law d.d. 20 April 2014  No. 81-FZ)

As of January 1st, 2015, revenues from realization of donated assets may be reduced by market cost of those assets as determined on the date of its acquisition.

• LIFO method excluded from taxation (item 9 of Clause 1 Of Law d.d. 20 April 2014  No. 81-FZ)

Accountancy has not used LIFO method since 2008. This alteration is targeted to reduction of differences between cost and tax accounting.

• Accounting losses from assignment of debt receivables changed (item 13 of Clause 1 Of Law d.d. 20 April 2014  No. 81-FZ)

As of January 1st, 2015, amount of loss from assignment of receivables to a third party prior to payment term as provided in the contract for realization of goods (works, services) will be determined as per new regulations (item 1 of Clause 279 of RTC). Its amount is calculated via one of the following methods as chosen by a tax-payer:

- basing on maximum percentage rate set for relevant currency type per item 1.2 of Clause 269 of RTC for debt obligation equal to revenue from assignment of receivables for the periood from assignment date to payment daye as provided in the contract for realizatio of goods (works, services);

- on the basis of percentage rate approved in accordance with methods as provided in section V.1 of RTC for the stated debt obligation.

Loss accounting procedure as described has to be formalised in accounting policy of the tax-payer (paragraph 2 of item 1 of Clause 279 of RTC).

As of January 1st, 2015, organizations applying accrual method may consider losses from assignment of receivables performed to the benefit of a third party subsequent to emergence of payment term under the contract for realization of goods (works, services), in a lump sum on the assignment date.

As of January 1st, 2015, clause 279 of RTC gets supplemented with item 4 covering deals of assignment that are now considered controlled deals as per section V.1 of RTC. Thus, in case of debt assignment prior to the payment term as provided in the contract for realization of goods (works, services), should the assignment deal is deemed controllable, actual price for that deal is considered market one considering provisions of itemj 1 of clause 279 of RTC (paragraph 1 of item 4 of clause 279 of RTC).

• Debenture interest accountance procedure changed (item 17 of Clause 3 Of Law d.d. 28 December 2013  No. 420-FZ)

As of January 1st, 2015, rating of expenses on interest for debted assets usage ceases. Organization will be able to consider accrued interest without limitations on the basis of actual rate as provided in the deal conditions. Controlled deals are exclusive of that procedure. As for debt obligations in controlled deals, limit values for interest rates are linked to international rates EURIBOR, SHIBOR, and LIBOR. Those alterations do not cover procedure of interest rating As described in item 2 of clause 269 of RTC. ‘Subtle capitalizing' rules remain untouched.

• Features of controlled foreign organizations' revenue taxation established (item 22 of Clause 2 Of Law d.d. 24 November 2014  No. 376-FZ)

As of January 1st, 2015, tax base has to be determined independently for each controlled foreign organization.

• Dividend tax rate increased (item 36 of Clause 1 Of Law d.d. 24 November 2014  No. 366-FZ)

As of January 1st, 2015, tax for dividends received by a Russian organization, is paid under 13% rate. Previously those dividends were taxed under revenue tax of 9%.

• A Russian organization that received dividends in 2014 shall pay revenue tax should it had not been subtracted. A depository shall inform the tax entity of dividends transferred in 2014 to Russian organization if revenue tax had not been subtracted.

As of June 24th, 2014, RTC incorporates alterations legally binding a depositary to subtract a revenue tax from dividends paid to both Russian and foreign companies. It should be noted that a series of transition provisions for 2015 is provided in relation to those novelties. Thus, Russian organizations that had received revenue in dividends in 2014 with no subtraction of revenue tax by a tax agent, have to calculate that tax on their own. They should be guided by a formula as provided in item 5 of clause 275 of RTC. The tax has to be transferred to the budget not later than on March 28th, 2015.

• Procedure of tax base establishing for security bonds operations and procedure for accountancy of losses from security bonds operations altered (clause 280 of RTC);
• Tax base establishing procedure for operations with term transaction financial instruments (Clause 304 of RTC);
• Settlement of taxation of security bonds in case of clearing their face value in parts (item 3 of Clause 271, sub-item 7 of item 7 of Clause 272, item 6 of Clause 280 of RTC);
• Expenses for clearing of own debt currency papers circulating in Formal Market for Securities, may be accounted partially (sub-item 3.1 of item 1 of Clause 265 of RTC);
• Features of tax base determination for parties to property trust agreement clarified (Clause 276 of RTC);
• Reduction of revenue tax amount (advancement payment for revenue tax) by the amount of salex tax (item 20 of Clause 2 Of Law d.d. 29 November 2014  No. 382-FZ) if there is a sales tax for the enterpreneurship
• Amortizable assets scope extended (Subclause «а» of item 17 of Clause 2 Of Law d.d. 29 November 2014  No. 382-FZ)

Basic assets being in reconstruction and modernization for more than 12 months and still used in enterpreneurship are included in the scopr of amortizable assets.

VAT

• Invoice register maintenance obligation is cancelled for all VAT-paying organizations (except for mediators and real estate developers) (Subclauses «а» and  «b» of item 4 of Clause 1 Of Law d.d. 20 April 2014  No. 81-FZ)

As of January 1st, 2015, in case of invoice billing, the registers shall be maintained only by:

• mediators working in transport expiditing contracts (should their reward amount only is considered in their revenues);
• mediators working on their own behalf (under commission or agent contracts);
• real estate developers.

Apart from that, they must submit a tax statement for VAT imposed as per standard procedures.

• Establishment of sources for information in VAT statement

As of January 1st, 2015, clause 174 of RTC states the documents subject to extraction of information for VAT statement. As per new item 5.1 of the clause, the statement shall include information stated in the following documents:

- tax-payer's purchase and sales ledgers;

- log of received and billed invoices (for enterpreneurship);

- billed invoices. This provision covers persons listed in item 5 of clause 173 of RTC, in particular, VAT-payers having billed invoices with separate tax amount.

• Establishment of persons to submit invoice register to a tax entity

As of January 1st, 2015, as per item 5.2 of clause 174 of RTC an obligation to submit electronic log of received and billed invoices is established. This provision covers:

- persons not paying VAT (e.g., those applying STS);

- tax-payers released from duties related to VAT calculation and payment (as per clause 145 of RTC in particular).

Log of received and billed invoices shall be submitted not later than on 20th day of a month following the ended tax period

• VAT statement submitted in paper form is considered non-submitted if it had to be submitted electronically via TKS (item 1 of Clause 2 Of Law d.d. 4 November 2014  No. 347-FZ)

The statement will be considered non-submitted even if it is submitted on paper in time.

• Payment and submitting terms for VAT statements changed (item7 of Clause 2 Of Law d.d. 29 November 2014  No. 382-FZ)

As of January 1st, 2015, payment of VAT and submitting respective statements shall be performed not later than on 25th day of a month following the accounted quarter.

Excises

• Excise rate increased (Subclause «а» of item 15 of Clause 1 Of Law d.d. 24 November 2014  No. 366-FZ)

Excise rate for tobacco, alcohol and alcohol-containing products are increased (as compared to those previously established for 2015).

• List of excisable goods extended (item 23 of Clause 1 Of Law d.d. 24 November 2014  No. 366-FZ)

As of 2015 benzol, paraxylene, orthoxylene, and jet kerosene become independent excisable goods. Apart from that, natural gas can also be considered an excisable item in cases provided in international contracts.

Mineral extraction tax

• Parameter determining initial extracted oil reserves not booked as state assets prior to January 1st, 2006, clarified (Subclause «с» of item 2 of Clause 1 Of Law d.d. 28 June 2014  No. 187-FZ)

As of January 1st, 2015, all initial extracted oil reserves are determined on the basis of state balance as present on 1st of January of a year following the year when oil reserves on the subsurface site in question have been booked in state balance of mineral assets for the first time

• Way of booking oil reserves in state balance is established (Subclause «а» of item 3 of Clause 1 Of Law d.d. 28 June 2014  No. 187-FZ)

It is the date of approval of state expert examination of mineral reserves.

• Conditions for application of factor determining oil production difficulty (KD) are complemented  (Subclause «b» of item 3 of Clause 1 Of Law d.d. 28 June 2014  No. 187-FZ)
• Gas condensate cost calculation procedure clarified (item 49 of Clause 1 Of Law d.d. 24 November 2014  No. 366-FZ)
• New parameters influencing NRPT during oil production are introduced (item 50 of Clause 1 Of Law d.d. 24 November 2014  No. 366-FZ)

Property tax

• Procedure for payment of tax calculated from cadaster cost related to objects property rights of which has emerged or expired during the taxation period is settled

Tax for objects property rights of which have emerged or expired during the taxation period is calculated with a special factor (item 5 of Clause 382 of RTC).

• Inspections can determine tax for foreign organizations' property by calculation (Subclause «b» of item 8 of Clause 2 Of Law d.d. 4 November 2014  No. 347-FZ) if the foreign organizations lacking permanent agencies in Russia do not submit property tax statements.
• Major tax-payers may submit a unified property tax statement for a region en bloc (item 8 of Clause 2 Of Law d.d. 4 November 2014 No. 347-FZ)
• Alteration of group of main assets not being subject to property tax (item 55 of Clause 1 Of Law d.d. 24 November 2014 No. 366-FZ)

As of January 1st, 2015, main assets already included in the first or the second amortization groups as per Classification approved by the decree of the Government of Russia dated January 1st, 2002, No.1, are not considered a taxation object. Movable property purchased on a date following January 1st, 2013, is still free from taxation only in case if the reason for its booking was not in reorganization or a deal with an interdependent person.

Water tax

• Water tax amount increased (items 42, 43 of Clause 1 Of Law d.d. 24 November 2014  No. 366-FZ)

Land tax

• Enterpreneurs are released from duty to calculate land tax and submit tax statements (items 9–13 of Clause 2 Of Law d.d. 4 November 2014  No. 347-FZ)

As of January 1st, 2015, enterpreneurs shall pay land tax the same as other citizens, on the basis of notifications received from tax services. They won't have to transmit advance paymets and submit land tax statements.

Transport tax

• Advance payments of transport tax on expensive cars will be calculated with multiplying factor

As of January 1st, 2015, organizations shall calculate advance payments of transport tax considering multiplying factors established for expensive cars (average cost of around 3 million roubles). Earlier the multiplying factor was to be applied only for payment of transport tax for a taxation period.

Simplified taxation system (STS)

• List of taxes not to be paid by organizations of STS altered (item 1 of Clause 2 Of Law d.d. 2 April 2014  No. 52-FZ)

STS organizations will have to pay property tax for real estate tax base for which is determined as cadaster cost

• List of organizations not covered by prohibition of STS clariried (item 2 of Clause 2 Of Law d.d. 2 April 2014  No. 52-FZ)

Restriction does not involve organizations share of direct participation of other organizations in which does not exceed 25%:

• if they are business entities and business partnerships established by budget and autonomous institutions as per Law No. 127-FZ d.d. August 23rd, 1996, in order to practice results of intellectual activity exclusive rights on which belong to those scientific institutions;
• if they are business entities and partnerships established by budhet and autonomous educational organizations as per the Law No. 273-GZ d.d. December 29th, 2012 in order to practice results of intellectual activity exclusive rights on which belongs to those educational organizations.
• Unified tax reduction by sales tax amount provided (item 24 of Clause 2 Of Law d.d. 29 November 2014  No. 382-FZ)

State duty

• State duty amount increased (Clause 1 Of Law d.d. 21 July 2014  No. 221-FZ) for the most of legally significant activities
• A reduction factor for state duty payment by citizens for legally significant activities established (item 11 of Clause 1 Of Law d.d. 21 July 2014  No. 221-FZ)

The factor comprises 0.7. It applies to citizens using unified portal for state and municipal services (regional or other portals) and obtain the duty-paid service electronically.

Patent taxation system

• Minimum limit of potential revenue cancelled (Subclause «а» of item 1 of Clause 1 Of Law d.d. 21 July 2014  No. 244-FZ)

As of January 1st, 2015, there will be only limitation of maximum possible revenue. It will remain the same and comprise 1 million roubles.

• Power of federal subjects related to patent taxation system extended (Subclause «b» of item 1 of Clause 1, Subclause «а» item 2 Clause 1 Of Law d.d. 21 July 2014  No. 244-FZ)

Federal subjects can set up a patent cost depending on principal place of business (i.e. patented territory).

• Additional reason for refusal of patent introduced (Subclause «с» item 2 Clause 1 Of Law d.d. 21 июля 2014  No. 244-FZ)  if mandatory items in patent statement are omitted

Sales tax

• A new payment is introduced into local taxation structure – sales tax (item 30 of Clause 2 Of Law d.d. 29 November 2014  No. 382-FZ)

As of January 1st, 2015 land tax and property taxes of natural persons will be joined by sales tax. Sales tax will be applied for usage of movable and real property in commercial activities. In Moscow, Saint Petersburg and Sevastopol the sales tax may be introduced not earlier than as of July 1st, 2015. In other municipal structures, the sales tax may be introduced only subsequent to passage of relevant federal law.

Alterations for Republic of Crimea and Sevastopol

• A specific legal regime becomes effective in Crimea and Sevastopol (Clause 2 Of Law No. 377-FZ d.d. November 29th, 2014, Law No. 377-FZ d.d. November 29th, 2014) – free economic zone (FEZ).
• Reduced revenue tax rates established (Subclause «b» of item 6 Clause 2 Of Law No. 379-FZ d.d. November 29th, 2014)

For FEZ participants, as of January 1st, 2015, maximum revenue tax rate comprises 0% for federal budget and 13.5% for regional budget.

• Specific conditions for VAT calculation on operations during the transition period (item 1 of Clause 2 Of Law No. 379-FZ d.d. November 29th, 2014)

As of January 1st, 2015, a new procedure for determination of tax basis and VAT deductions is established for operations of the transition period involving organizations that had and had not been registered under Russian legal codes. 

• Reduced rates for insurance (Clause 5 Of Law d.d. 29 ноября 2014  No. 378-FZ)
• Tax rates at special regimes may be reduced down to null (items 11, 15, 19 of Clause 2 Of Law No. 379-FZ d.d. November 29th, 2014)

Regional authorities of Republic of Crimea and Sevastopol have a right to reduce tax rates without any limitations for single agricultural tax, simplified taxation and patent taxation systems.

• Property tax privileges established (item 21 of Clause 2 Of Law No. 379-FZ d.d. November 29th, 2014)

As of January 1st, 2015, FEZ participants are released from property tax payments in Crimea and Sevastopol. The privilege will remain effective for 10 years.

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