Amendments to the Russian Tax Code, tax deduction for Moscow investors, confirmation of economic activity type, news of the Federal Tax Service
A brief overview of the legislation of the Russian Federation for May 2020
1. Changing the format and procedure for electronic notification of participation in an international group of companies.
2. The procedure for applying reduced tariff contributions for SMEs.
3. Amendments to the Russian Tax Code governing the return of excessively paid amounts of insurance premiums for Compulsory Pension Insurance.
4. Organizations with an income of not more than 25 million rubles per quarter in 2020 will be able to switch to paying quarterly advance payments of income tax.
5. On the day of the resumption of activities after the pandemic, it is necessary to submit documents to confirm the main type of economic activity.
6. The Federal Tax Service of Russia recommends that organizations reconcile information on taxable vehicles and land.
7. The status of a Moscow investor will allow you to get an investment tax deduction. How to get it?
8. The Federal Tax Service controls banks’ implementation of the obligations established by Articles 46, 60, 76, 86 of the Russian Tax Code 1. The format and procedure for filling out an electronic notification of participation in an international group of companies has been supplemented with new information about the prior consent for transmitting the information in the country report to the competent authorities of foreign countries. It can be issued both to authorized state bodies and state corporations. The submission deadline is 8 months from the end date of the reporting period. A report for 2020 must be submitted before 08.31.2021.
Updates were introduced in accordance with the amendments to Articles 105.16-2 “Submission of notifications of participation to an international group of companies”, 105.16-3 “General Provisions on the Submission of Country Information” of the Tax Code of the Russian Federation, introduced by the Federal Law of 06.06.2019 N 125-ФЗ.
Source: <information> Federal Tax Service of Russia
2. According to the Federal Law of 01.04.2020 N 102-ФЗ from April 1, for small and medium-sized enterprises, the aggregate rate of insurance premiums to state extra-budgetary funds was reduced to 15% for a portion of payments and remuneration to individuals exceeding the minimum wage.
Part of the payments agreed upon at the end of each calendar month in an amount equal to or less than the minimum wage is taxed at 30% at the established rates. Payers are entitled to apply reduced rates of insurance premiums from the first day of the month in which information about them is entered in the register of SMEs, but not earlier than 01.04.2020. In case of exclusion of the payer from the register, reduced tariffs do not apply from the first day of the month when the payer was excluded.
Inclusion in the register is carried out in the Russian Federation only by audit organizations, the next inclusion period is from July 1 to July 4, 2020.
Source: <information> Federal Tax Service of Russia
3. The court recognized the restriction of the right to refund of overpaid amounts for compulsory pension insurance as non-compliant with the Constitution of the Russian Federation only upon recording information on the individual personal accounts of insured persons and without taking into account the fact that a particular insured person had an insured event.
Revision of clause 6.1 of article 78 and clause 1.1. of article 79 of the Tax Code confirms that the amount of excessively paid insurance premiums is not refundable if this amount has been taken into account on the individual part of the tariff on the personal account of the insured person who was assigned an insurance pension at the time of submitting the application for refund. Estimated date of entry into force of the law is 01.01.2021
Source: Draft Federal Law N 953961 - 7 “On Amending Part One of the Tax Code of the Russian Federation” 4. In accordance with Article 2, Clause 2 of Federal Law N121-ФЗ, taxpayers whose income from the sale is quarterly less than 25 million rubles for the 2,3,4 quarters of 2019 and the 1st quarter of 2020, switch to paying only quarterly advance payments based on the reporting periods of 2020. When compiling a declaration for the 1st quarter of 2020, monthly advance payments for the 2nd quarter of 2020 are not calculated.
For the 3.4 quarters of 2019 and 1.2 quarters of 2020 they switch to paying only quarterly payments based on the results of 6 months of 2020.
For the 4th quarter of 2019 and 1,2,3 quarters of 2020 they switch to paying only quarterly advance payments according to the results of 9 months of 2020.
Source: Letter of the Federal Tax Service of Russia of 13.05.2020 N SD-4-3 / 7843 @ “On the Transition in 2020 to Pay Quarterly Advance Payments on the Corporate Income Tax”
5. In connection with the adoption of Decree of the President of the Russian Federation from 05.11.2020 N316, the deadline for the submission of documents for confirming the main type of economic activity for organizations whose activities were suspended is the first working day after the resumption of activity.
Policyholders carrying out several types of economic activity, whose activities were suspended after 05/11/2020 and who did not submit early documents to confirm the type of economic activity, will be classified by the territorial bodies according the highest occupational risk class.
Source: <Information> FSS of the Russian Federation "On the deadline for the submission of documents to confirm the main type of economic activity"
6. The obligation of organizations to submit tax returns on transport and land taxes since the tax period of 2020 has been canceled. To verify the information, it is necessary to obtain an extract on taxable objects owned by the organization, and subsequently contact the tax authority.
In accordance with the current procedure, an organization is registered and deregistered at the location of its vehicles and land on the basis of information that is sent to the tax authorities by the traffic police departments of the Ministry of Internal Affairs of Russia and other authorities.
Source: <Information> Federal Tax Service of Russia "On the possibility of reconciling information on taxable vehicles and land plots of the organization" 7. The Moscow government has established the procedure for assigning the status of a Moscow investor, which gives the right to apply an investment tax deduction when calculating income tax.
This status can be assigned to legal entities located in Moscow, the main economic activity of which is manufacturing (except for coke and petroleum products).
Requirements:
- lack of debt on mandatory payments to budgets in excess of 100,000 rubles,
- the existence of a right of ownership or other right to an object of capital construction for the implementation of the main economic activity,
- coefficient of renewal of fixed assets not less than 85 per year. Depending on the size of the minimum annual amount of expenses of the organization, the status is assigned:
- The first category is from 200 to 300 million rubles, excluding VAT.
- The second category is over 300 million rubles excluding VAT. The term for assignment of status is 7 years, confirmation is after 5 years.
Source: Decree of the Government of Moscow of 05.27.2020 N 630 - PP “On the procedure for applying the investment tax deduction”
8. The Federal Tax Service of Russia exercises control over the fulfillment by banks of the obligations established by Articles 46, 60, 76, 86 of the Tax Code.
In respect of an indefinite circle of taxpayers, payers of fees, payers of insurance premiums, responsible members of the Consolidated group of taxpayers, tax agents, the audit period may not exceed 3 calendar years preceding the year in which the decision is made. Verification period is less than 2 months, the possibility of extension - up to 4 months.
In relation to a specific person, control is carried out upon detection of facts that establish a violation by the bank of the requirements of the legislation of the Russian Federation.
Source: Order of the Federal Tax Service of Russia dated December 25, 2019 MMV-7-8 / 659 @ “On the Approval of the Procedure for Monitoring the Performance by Banks of the Obligations Set by the Tax Code of the Russian Federation” (Registered in the Ministry of Justice 05/26/2020 N58477)
