1. In order to represent a legal entity in the arbitration court the presence of qualified lawyers is mandatory2. Employees over the age of forty are entitled to an additional paid day off per year3. Nice and not so nice innovations in currency legislation4. Demand a VAT invoice if you refuel a company’s vehicles5. How to calculate sick leaves during the pandemic6. Don’t forget to withhold personal income tax if you got paid with the coronavirus subsidy7. What taxes can’t be deferred even during the pandemic8. Passing the coronavirus test and not to paying the tax for it
1. In order to represent a legal entity in the Arbitration court the presence of qualified lawyers is mandatory
Starting from October 1, 2019, in the arbitration court, in addition to the heads of legal entities and other legal representatives, it became mandatory to involve lawyers and other legal aid providers who have a higher legal education or a degree in law.
The resolution of the constitutional Court of the Russian Federation of 16.07.2020 clarified that persons associated with the organization who are not lawyers, but who have the necessary knowledge and competence in the field of disputed relations, can be representatives in court if lawyers or attorneys simultaneously represent the organization.
Lawyers must submit to the court documents on higher legal education or a degree in law, as well as documents certifying their authority. In practice, the judge did not allow other representatives of organizations without showing proof of legal specialization.
2. Employees over the age of forty are entitled to an additional paid day off per year
From August 11, 2020, Federal law No. 261 of 31.07.2020 will come into force, according to which employees over the age of 40 until the age of pre-retirement are entitled to a paid day off once a year for medical examination. At the same time, the employer is obliged to keep their working place, position and average earnings.
It should be noted that since the end of 2018 employees of retirement and pre-retirement age have the right for two days off a year.
If the company wants to require its employees to provide documentary evidence that they did not spend an additional free day for personal purposes, then it is necessary to issue an internal local act, which will specify the requirement to provide the appropriate certificate from the medical organization.
3. Nice and not so nice innovations in currency legislation
Alongside with the amendments on the expansion of permitted currency operations, it is now also possible to transfer money received from non-residents to the foreign bank accounts of affiliate Russian organizations (previously, currency legislation did not provide for such a norm). Companies are allowed to do so if:
· an affiliate returns goods or does not receive paid service from a non-resident, which are necessary for activities other than foreign economic deals;
· funds returned by a non-resident were previously deposited by an affiliate as a deposit under the conditions of lease agreement;
· an affiliate sells vehicles and (or) property, except for deals within the framework of foreign economic activities;
· insurance payments from non-resident insurers.
At the same time, new document made life of some Russians more complicated. At present, residents (with some exceptions) must report to the tax service on the cash flow on foreign accounts. Starting from 2021 it will be necessary to report not only cash, but other financial assets, too.
4. Demand a VAT invoice if you refuel a company’s vehicles
The Ministry of Finance in its letter once again reminded that if a product is purchased at retail, there would be no VAT deduction without an invoice. The Financial state Agency explained that the tax code of the Russian Federation does not allow VAT deduction for goods purchased at retail. Therefore, if gasoline is purchased at a gas station, the deduction will not be allowed without a VAT invoice (Factura-invoice) (letter from the Ministry of Finance of the Russian Federation dated 25.06.2020 N 03-07-09/54634).
5. How to calculate sick leaves during the pandemic
The social insurance Fund explained that for sick leave in the period from April 1 to December 31, 2020, a temporary calculation procedure has been established:
· if the amount of sick leave, calculated in the usual way, for a full calendar month is lower than the minimum wage (12130) – the benefit is paid in the amount of the minimum wage;
· to calculate the daily allowance based on the minimum wage, 12130 must be divided by the number of calendar days in the month. Then, to calculate the sick pay, the amount of the daily allowance is multiplied by the number of days of illness;
· if there are regional coefficients, the minimum wage is multiplied by them;
· if the employee works on a part – time basis, the amount of the benefit is determined in proportion to the time worked.
At the same time, for the period from March 25 to March 31, such sick leave is calculated in the usual "pre-quarantine" order.
6. Do not forget to withhold personal income tax if you got paid with the coronavirus subsidy
During the pandemic, companies and individual entrepreneurs received a minimum wage (12130) subsidy for each employee. This subsidy becomes the property of the company, is not considered for taxation and can be spent for any purpose, including paying salaries.
However, the salary paid to employees of the organization or individual entrepreneur from the provided subsidy is subject to personal income tax and insurance premiums in the general manner (letter dated July 6, 2020 no. BS-4-11/10821@, dated June 23, 2020 no. BS-4-11/10271@).
7. What taxes cannot be deferred even during the pandemic
The Federal tax service reminded taxpayers working in the industries affected by the spread of the coronavirus, and strategic, system-forming and city-forming organizations, that they are entitled to a deferred or installment payment of tax.
This deferral or installment is granted for taxes, advance payments, and contributions that are due in 2020, with the exception of:
• tax on extraction of mineral resources,
• tax on additional income from hydrocarbon production.
This is because special rules for granting deferrals or installments provide for the possibility of changing the payment terms for a period of 3 months to 5 years. The Tax Code of the Russian Federation regulates this procedure under Chapter 9 of the Tax Code, which does not apply to tax agents. Thus, it will not be possible to postpone the payment of personal income tax (letter of the Federal tax service dated June 23, 2020 no. SD-18-3/1034@).
8. Passing the coronavirus test and not to paying the tax for it
The Ministry of Finance explained that testing for coronavirus is aimed at ensuring normal working conditions, so no income occurs for personal income tax purposes. Organizations can also include the cost of testing for COVID-19 and antibodies in the income tax expense if there is documentary evidence (letter of the Ministry of Finance of the Russian Federation dated 25.06.2020 No. 03-0307/54757).