Analytics and brochures

On December 8, 2010, the Moscow State Commercial Court issued its decision in a case involving an analysis of whether the collection of information can constitute a permanent establishment (PE) under domestic law and the double tax treaty between Russia and USA dated June 17, 1992.

Pepeliaev Group advises that Federal Law No. 394-FZ dated 28 December 2010 introduces amendments to some Russian laws whereby the responsibility to perform certain types of state control is transferred to the Russian customs authorities.

Pepeliaev Group notes that it is intended to amend, in the near future, the Russian Civil Code’s provisions on intellectual property issues.

30 December 2010 saw the publication of Federal Law No. 395-FZ dated 28 December 2010 “On amending the second part of the Tax Code of the Russian Federation and specific laws of the Russian Federation”. These amendments touch on different tax issues, among the most interesting of which are a company being able not to pay profit tax (or individual being able not to pay income tax) on transactions involving securities or participation interests the taxpayer has owned in Russian companies for a protracted time; taxpayers having wider possibilities in terms of determining the service life of non-tangible assets; and eliminating the uncertainty in converting advance payments received in foreign currency when calculating profit tax.

Federal Law No. 409-FZ dated 28 December 2010 has brought in a new ground for exemption from profits tax in an amicable increase of net assets. This law mainly deals with the regulation of relations between companies and their shareholders relating to profit distributed but not claimed (i.e. unclaimed dividends). However, some of the amendments brought in by the law go beyond the scope of this issue.

Pepeliaev Group advises that, on 1 January 2011, Federal Law No. 411-FZ “On amending the Code of Administrative Offences of the Russian Federation” dated 28 December 2011actually came into force. The Law contains amendments to the Code of Administrative Offences (the “CoAO”) establishing a fine of up to 5 million roubles for a breach of the compulsory requirements of Federal Law No. 381-FZ “On the fundamentals of state regulation of trade in the Russian Federation” dated 28 December 2009.