We would like to inform you that the draft law increasing fines for employers for failure to perform military registration duties has been adopted in the form that we discussed in our previous alert and will take effect October 1, 2023.

The Russian State Duma is now considering amendments to the Russian Code of Administrative Offenses. The amendments provide for a significant increase in the fines for failure to perform the military registration duties.

On July 12, 2023, the new minutes of a meeting of the Russian Government Commission regarding the rules for obtaining authorizations for closing transactions in interests or shares and paying dividends were published on the website of the Russian Ministry of Finance.

A new draft law on changes to Russian migration laws is about to be adopted. The key changes will affect highly qualified specialists (HQSs).

A new list of states and territories that provide preferential tax treatment and/or do not require the disclosure and provision of information when financial transactions are conducted (“offshore zones”) will take effect on July 1, 2023.

A new law will take effect on July 1, 2023, enabling companies to cease operations in Russia according to a simplified procedure.

On May 31, 2023, the Russian Government introduced Draft Law No. 369931-8 to the Russian State Duma. This draft law makes a number of amendments to the Russian Tax Code. One of the most significant changes is a revision of the procedure for taxing the personal income of those who have lost their tax residency and receive income from working remotely for Russian employers and income from the services they provide and the work they perform over the Internet.

Russian IT companies that hold state accreditation and currently enjoy tax benefits, such as a 0% corporate income tax rate and reduced insurance contribution rates, should be aware of recent changes in the accreditation conditions. Many of these companies have failed to disclose their tax secrecy, a precondition for accreditation, as alerted by the Ministry of Digital Development, Communications, and Mass Media.

On March 27, 2023, the Government Commission for Control over Foreign Investment in the Russian Federation (further the Commission) published an extract from the minutes of its meeting of March 2, 2023, No. 143/4, which revised the conditions for granting permits for transactions aimed at disposing of shares/stocks by foreign participants/shareholders from so-called “unfriendly” countries.

The Russian Tax Code has been amended to exempt interest forgiven by a foreign lender from corporate income tax.