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20Feb

Russian Statutory Audit — Choose Your Auditor for 2019

Awara advises selecting an auditor of financial statements for 2019 and recommends making a choice right now. We want to remind you that every company is required under Russian law to conduct statutory audits of 2019 in cases when: From January 1, 2020 companies no longer need to submit audit reports to statistical authorities, only electronic […]
31Jan

What Reporting Are Participants of International Companies Required to Submit in 2019

Who Is Required to Submit the Additional Reporting From 2018, Russian organizations that are part of international groups of companies must annually submit additional documentation to the tax authorities ― the so-called “three-level reporting” on transfer pricing.[1] This includes: notice of participation in an international group of companies; country data on such international group of […]
25Jan

Problems of Determining the Legal Status of the Self-Employed When Imposing Tax on Professional Income

Currently in Russia there is a fairly large category of the population working “for themselves.” We are talking about the so-called “self-employed”, who receive income from providing services to citizens without registering as individual entrepreneurs, or from the use of personal property. This includes babysitters, maids, housekeepers, designers, cooks, tutors, private drivers, dressmakers, photographers, hairdressers, […]
14Jan

Scheduled inspections for Russian businesses in 2019

Every year the Prosecutor General’s Office of the Russian Federation publishes a list of companies that are subject for scheduled state inspections. You can find the inspection plan for 2019 here. Please also note that apart from the official plan, a number of unscheduled spot checks (e.g. a tax inspection) may be initiated by the state […]
28Nov

Don’t Lose Revenue in 2019 Because of a New VAT Rate

Due to Inaccurate Specification of Prices in Contracts Your Revenue Could Be at Risk. Check the Terms of Pricing in Your Agreements in the Context of Increasing the Tax Rate of VAT up to 20% Starting from January 1, 2019, the VAT rate will be set at 20% instead of 18%.[1] The new rate applies […]
22Oct

The Government Is Preparing a Series of Measures to Improve Business Climate

Doing business in Russia will become easier: the Ministry of Economic Development, with the participation of entrepreneurs, has prepared a set of measures within the framework of the Transformation of Business Climate Plan (TBC). This project is not temporary: every six months the list will be updated with new initiatives. Already the first package of […]
03Oct

Ensure Your Foreign Employees Are Registered in Compliance with Migration Regulation Requirements

President Vladimir Putin signed the draft law on introducing changes to the procedure for migration registration of foreign citizens in Russia. It specifies the address at which a foreign national or a stateless person must register after coming to Russia, as well as who is responsible for the registration procedure. Residence address Under the law, […]
25Jul

VAT rate in Russia will be increased from 18% to 20% as of January 1, 2019

Vladimir Putin signed a bill increasing the rate of Value Added Tax from 18% to 20%. The increase will be effective starting from January 1, 2019. At the same time, Russia will keep the current reduced VAT rates (10% and 0%) for socially important goods and services. Thus, by the end of 2019 the budget […]
18Jun

Reminder: Notification on the Membership in a Multinational Enterprise Groups and Country-By-Country Data

In the beginning of 2018 Russia began automatic exchange of tax information under the OECD Convention (Organization for Economic Co-Operation and Development) and introduced new reporting requirements for members of multinational enterprise (MNE) groups. What companies does the new law apply to? The new reporting must be filed by MNE groups with consolidated revenue over […]
04Jun

Public Disclosure of Russian Companies Data Is Postponed

The Russian Federal Tax Service has postponed the launch of the “Transparent Business” project until August 1, 2018. The public disclosure of corporate data (except secret tax information) was to have been launched on June 1, 2018. The Tax Service plans to publish the data of all Russian firms. There’s however one exception: companies which […]