ProsperoScope is a newsletter of Deloitte’s Private Client Service team. This newsletter presents recent and upcoming changes in Russian and international tax legislation, and information about trends and interesting developments in the private client world.
It is not intended to be a comprehensive statement of the law. We accept no liability for the completeness and accuracy of information contained in the newsletter or for any decisions made by you after reading the newsletter without additional professional consultation.
26 December 2014
Please note that on 25 December 2014 the Federation Council of the Russian Federation accepted Draft Law № 608817-6 “On Amendments to Article 6 of the Federal Law ‘On Citizenship of the Russian Federation’” (hereinafter, the “Draft Law”). As mentioned in our last issue of GES Legislative News dated 24 September 2014, the current legislation, which came into force in August this year, establishes the responsibility of Russian citizens to disclose information on any foreign citizenship, residence permit, or any other document entitling its holder to permanent residence in a foreign country to the local Federal Migration Service authorities. Failure to do so may result in administrative or criminal liability.
24 December 2014
On 23 December 2014 the State Duma of the Russian Federation approved in the third reading a draft law № 611989-6 “On Amendments to Articles 46 and 74.1 and Article 217 of the first second parts of the Tax Code of Russian Federation” respectively (hereafter, “the Draft Law”), introducing changes to the procedure for calculation of the amount of interest income on ruble deposit accounts opened with the banks located in Russia, that is not subject to the personal income tax (hereinafter, “PIT”).
11 December 2014
In this issue of ProsperoScope we would like to draw your attention to some recent information regarding the latest changes in the Russian tax legislation.
In this issue:
- Tax rate increase on dividends for individuals
- New rules for applying PIT to income from the sale of real estate property
- New rules for obtaining social tax deductions under voluntary life insurance agreements
If you need our assistance in this matter, please let us know.
1 December 2014
On 24 November 2014, Federal Law № 376-FZ“On amending Parts I and II of the Russian Federation Tax Code (in respect of taxation of the profits of controlled foreign companies) (hereinafter - the "Law") was signed by the President of the Russian Federation. The Law, which will enter into force as of 1 January 2015, will introduce in the legislation a package of measures aimed at ensuring a "deoffshorisation" of the Russian economy and, as such, new rules regarding the taxation of income derived by foreign companies.
The Law introduces changes to the Russian Tax Code in five distinct areas, which were described in detail in our legislative bulletin Legislative Tracking in Focus of 27 November 2014. We enclose the newsletter for your information.
20 November 2014
On 4 November 2014 Russia ratified the OECD Convention on mutual administrative support regarding tax matters. The countries entered into the Convention provide administrative support to each other relating to information exchange, simultaneous tax inspections, collection of tax debts and adoption of interlocutory injunction. This cooperation is expected to become multilateral starting from 2018, as well as to be automatic which will ease and 20 November 2014.
You will discover more in this ProsperoScope issue.
27 October 2014
Please note that on 21 October 2014 State Duma of the Russian Federation accepted at the first reading a draft law, which is set to raise the tax rate on dividends for individuals - tax residents of the Russian Federation from 9% to 13%. There is a high probability that these changes will take effect from 1 January 2015. If you need our assistance in this matter, please let us know.
21 October 2014
Last week the UK Government published the changes to the Tier 1 (Investor) visa route. The minimum financial threshold for investments has been raised to £2 million. The changes will come into force on 6 November 2014 and will only apply to applications made on or after that date. They will not apply to existing holders of this visa, who will continue to need to invest £1 million.
If you need our assistance in this matter, please let us know.
15 October 2014
From 1 January 2015 all individuals considered to be residents of the Russian Federation in accordance with the Russian currency control legislation (hereinafter, “currency control residents”) will be obliged to provide the tax authorities with statements of the movement of funds on their accounts (deposits) opened with banks located outside the Russian Federation (hereinafter, “foreign bank accounts”).
18 September 2014
From 1 January 2015 all individuals considered to be residents of the Russian Federation in accordance with the Russian currency control legislation (“currency control residents”) will be obliged to provide the tax authorities with statements of the movement of funds on their accounts (deposits) opened with banks located outside the territory of the Russian Federation (“foreign bank accounts”).
10 September 2014
On 2 September 2014 the latest edition of the Draft Law on taxation of the profits of controlled foreign companies was published on the official website of the RF Ministry of Finance.
Please find attached the latest issue of Legislative Tracking in Focus discussing the latest edition of the Draft Law on CFCs, dated 26 August 2014
7 August 2014
On 4 August 2014, Federal Law No. 142-FZ “On amendments to Articles 6 and 30 of the Federal Law ‘On Russian citizenship’ and some other legislative acts” (hereinafter, the Law) came into effect.
The Law sets out the responsibility for Russian citizens to disclose whether they hold any foreign citizenship, residence permit or any other document entitling its holder to permanent residence in a
The approved form and the procedure for disclosure by Russian citizens of their foreign citizenship, residence permit or any other document entitling its holder to permanent residence in a foreign country were published...
30 July 2014
Federal Law No. 218-FZ On amendments to certain legislative acts of the Russian Federation amends Federal Law No. 173-FZ On foreign currency regulation and foreign currency control.
Notably, the Law amends Federal Law No. 173-FZ On foreign currency regulation and foreign currency control. In particular, it specifies the procedure of performing foreign currency transactions with the use of accounts opened with banks outside the Russian Federation for currency residents of the RF; provides that it is possible for residents to receive money into such accounts in the established situations without using accounts in Russian banks; and makes resident individuals responsible for submitting to the tax authorities of reports on the movement of cash on their accounts (deposits) in banks outside the RF.
19 June 2014
On 4 June 2014 the President of the Russian Federation signed Federal Law No. 142-FZ “On amendments to Articles 6 and 30 of the Federal Law ‘On Russian citizenship’ and some other legislative acts” (hereinafter, “the Law”). Published on the same date, the Law will take effect 60 days thereafter.