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Tax update 2017
Key changes and trends
Over the past few years, ongoing systemic changes have been churning up Russia’s tax landscape. Tax governance is becoming increasingly consistent with international approaches, thus integrating the Russian fiscal system into the global tax framework. The recent changes are meant to foster predictability, improving the investment climate and making the environment attractive for business. The legislative year that is currently closing was no exception.
In the wake of the BEPS measures, lawmakers have turned their attention to the fair distribution of VAT between jurisdictions, and introduced VAT for e-services rendered by foreign providers to Russian consumers.
The thin capitalisationand transfer pricing rules have been reexamined and redefined, eliminating some tax loopholes while easing up the excessive, economically unjustified regulatory restrictions.
In the context of applying global best practices, we must also mention the changes in environmental legislation encouraging companies to take on a greater social responsibility, and to improve their waste management (including as regards packaging) or face environmental taxes.
In this update, we have highlighted the most important changes in Russian tax legislation that will enter into force on 1 January 2017. Our overview of the key developments awaiting the Russian tax landscape in 2017 includes not only mere descriptions of the newly adopted laws, but also reviews of the regulations scheduled to enter into force in the upcoming year.