New regulations Overview Russia 2018

Dear Clients,

On behalf of the entire Forte Tax & Law team, I would like to wish you a happy New Year and a great start to the new business season! We hope that 2018 will be filled with success and achievements. To this end, we have put together a brief overview of the most important changes to be introduced to Russian laws so that you can be forewarned, and thereby forearmed, when they come into force in 2018.

Traditionally, the greatest number of changes is introduced to tax laws. A number of changes, which were pretty much expected, resulted from extensive work done to implement measures intended to combat tax base erosion and profit shifting to low or no-tax locations (BEPS Action Plan). They were also some surprises, and some amendments to the Tax Code were “thrown in” at the end of 2017. We also need to note that despite the moratorium declared by the President of Russia on increase in the tax burden on businesses until 2019[1], some changes will still result in actual tax burden increase.

Customs laws have been subject to major changes following the introduction of a new Eurasian Economic Union Customs Code to replace the Customs Union Customs Code. We have not covered this change here as it is so momentous that it deserves a separate review. Let’s just say that the Eurasian Economic Union Customs Code, which entered into force on January 01, 2018, is meant to simplify and speed up customs formalities.

The wind of change has not steered clear of currency, civil, labor and migration laws. Although these areas have not been subject to a re-working as far-reaching as tax and customs laws, some changes are rather substantial for business.

Below you will find a link to overview of the new laws that will be introduced in 2018. We would be pleased to discuss these changes with you as well as assist in adapting the business processes in place in your company to those changes. Adapting to changes is indeed a very savvy business move because, as Charles Darwin stated, it is not the strongest that survives, but those who are able best to adapt and adjust to the changing environment in which they find themselves.

 

Yours truly,

Anton Kabakov

Partner

To download full overview, click on the link

 

 

[1] Russian President’s address to the Federal Assembly in 2014 and 2015