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Rostrud Re-Affirmes: It Is Unlawful to Set & Pay Salaries in Foreign Currency

10Feb

Rostrud Re-Affirmes: It Is Unlawful to Set & Pay Salaries in Foreign Currency

The Federal Labor and Employment Service of Russia (further “Rostrud”) repeatedly stated in 2006 – 2009 that employers are not permitted to set and pay salaries in foreign currency (Letters No.1688-6-1 dated  10.10.2006, No.1729-6-0 dated 28.07.2008, No.1145-ТЗ dated 11.03.2009 and No.1810-6-1 dated  24.06.2009). Although Rostrud used to hold this position to avoid salaries automatically dropping […]
  • Posted by Awara
  • On February 10, 2016
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10Feb

New Rules Simplify Reimbursement of Costs for Legal Services in Court

New rules for reimbursement of costs for legal services are opening up broad prospects for recovery of debt of your clients in court. The Russian Supreme Court ruling of 21.01.2016 clarifies the procedure for reimbursement of costs incurred for court proceedings, and it is now easier for the winning party to a court case to […]
  • Posted by Awara
  • On February 10, 2016
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21Jan

Major Changes in Labor Law in 2015

Many legislative changes affecting, among others, labor issues were introduced in 2015. The scope of these changes has already resulted in closer scrutiny by regulatory bodies of employers’ compliance with labor and immigration laws. An overview of some of the most important changes is provided below. Tightening of administrative liability The liability for violation of […]
  • Posted by Awara
  • On January 21, 2016
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18Jan

New Reports for Federal Tax Service and Pension Fund

Introduction of quarterly reporting on Form 6-NDFL (6-НДФЛ) In 2016, employers acquired the obligation to submit a new quarterly report on Form 6-NDFL (before 2016 data on the amounts of personal income tax withheld had to be submitted to the tax office only once a year). At the same time, 2-NDFL has not been canceled: […]
  • Posted by Awara
  • On January 18, 2016
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25Nov

Reminder of Terms for Changing Work Permits

In view of practical issues that foreign nationals have been facing recently, we would like to remind you that amendments to Federal Law N 115-FZ dated 25.07.2002 entered into force on June 30, 2015. These new amendments require foreign employees to apply to the migration service to rectify their work permit in case of change […]
  • Posted by Awara
  • On November 25, 2015
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01Sep

Processing of Personal Data in Russia

Companies are required to store personal data in Russia as of September 1, 2015. On September 1, 2015 a requirement to localize the processing of personal data of citizens of Russia takes effect[1]. In this regard, companies that process personal data of citizens of Russia, for example, hotels, internet shops and other organizations, including those using […]
  • Posted by Awara
  • On September 1, 2015
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14Aug

Property Tax. Surveys of Buildings & Premises to Determine Their Actual Use

Since August 10, 2015 St Petersburg Land Resources and Land Management Committee (further the “Committee”) has started surveying buildings to determine their actual use[1]. These inspections have been put into place because property tax payable by organizations in St Petersburg is calculated on the basis of the cadastral value of buildings, if, among others: – […]
  • Posted by Awara
  • On August 14, 2015
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30Jul

Requirements for Localization of Personal Data

According to the amendments to the federal law on personal data, which will enter into force on September 01, 2015, personal data operators will be required to keep personal data of Russian citizens in Russia. These amendments have given rise to many practical issues directly affecting IT companies, as well as their clients using cloud […]
  • Posted by Alexander Ermakov
  • On July 30, 2015
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21Jul

7 Major Misconceptions about Transfer Pricing

The deadline for reporting controlled transactions has expired recently, and all the companies that had to report such transactions can now breathe a sigh of relief. Meanwhile, some companies which filed no reports on controlled transactions for 2013 have already received requests from tax authorities enquiring as to why no reports have been filed. Since […]
17Jun

Alert: New Tax Risks for Foreign Companies & Their Subsidiaries

A ruling on the high-profile case Oriflame vs. tax authorities[1] was rendered by the Moscow District Arbitration Court (cassation instance) on June 11, 2015. The conclusions drawn by the court in this case affect all foreign companies operating in Russia through subsidiaries. In this case, tax authorities and courts questioned the right of the Russian […]