Category: News

We would like to invite you to the Russia Seminar of EVOfenedex on 25 April in Amersfoort!

Create your own program by choosing from inspiring, instructive and practical workshops. The speakers are all specialists within their own field and most of them have more than 15 years of experience in doing business in Russia. One of the speakers is Lodewijk Schlingemann from Juralink. He will discuss “contracts and negotiations with Russian parties”.

You can also request a personal consultation of 25 minutes. The advisory meetings take place before and after the symposium. You can indicate your preference on the registration form. Would you like to have a chat or do you have questions to one of our speakers? You can meet the speakers directly at the seminar or afterwards, enjoying a drink.

Customers or relations of Juralink can subscribe for the membership price of 299.00 euros. Please do mention the special code: WMRU

More information is available on https://www.evofenedex.nl/evenementen/symposium-rusland-en-de-onderliggende-risicos-bij-export

As per February 15 the term during which foreign organizations providing E-services must file an application on tax registration will expire.

Since January 1, 2019 all foreign organizations, that sell electronic services and content to organizations, personal entrepreneurs and individuals, are obliged to pay Russian VAT to the budget of the RF regardless of whether they have a permanent representative office. All foreign suppliers must be registered in the tax office not later than 15.02.2019 via the online service “VAT-office of the IT-company”.

After the company has been registered with the tax office it will receive an INN and KPP for entering into an other service – “Personal account of a foreign company”. Through the personal account one can file tax declarations, pay tax,  communicate with and send documents.If the foreign company would not get registered with the Russian tax office and would not pay VAT, it could face severe fines up to 10 per cent of its revenues. In addition, VAT, a penalty and fine in the amount of 20-40 per cent of the unpaid tax sum will also be due by the foreign company.

Are you sure that your company does not provide e-services as listed by RF legislation?

From January 1, 2019 an exemption from personal income tax regarding the sale of property has become effective in the Russian Federation. Property comprises both immovable and other property except proprietary rights.

When gaining profit from the sale of property, both non-residents and residents of the RF can now be exempted from personal income tax. For this exemption to apply they must have the property freehold in their possession for a certain term. Based on the type of property and the circumstances of its acceptance, there are minimal terms for possession of property, after which no personal income tax would not be due on the sale.

The minimal ownership term stipulated for immovable property
is 3 years received:

• by means of inheritance or based on a documented gift from a family member or close relative;

• as a result of privatization;

• according to an annuity agreement with permanent alimony.

In other cases, the minimal ownership term for immovable property is five years.

Moreover, the 3-year ownership term is also applicable to property other than immovable property (except for proprietary rights).

If the non-resident would fail to achieve the minimal ownership term, the personal income tax would be due at a rate of 30 per cent of the total sum of the sales profit.

In case a non-resident uses property for entrepreneurial activity, the exemption of personal income tax can be applicable only to profit from the sale of vehicles, houses, apartments, rooms, dachas, garden houses or a any share/participation in them taking into account the abovementioned requirements.

These amendments follow from the Federal Law dated 27.11.2018 No. 424-FZ. If you have any questions, please contact Juralink by telephone or email. Our specialists will be pleased to support you on this issue.

The Supreme Court of the Russian Federation has supported the decisions of lower courts that refuse to execute the arbitral award of a foreign court. The ground provided is that the arbitration clause of the International Chamber of Commerce included in the contract between parties is not enforceable (case No. A40-176466 / 17).

Juralink has analyzed this situation and presents you ways to reduce the risk of non-execution of arbitral decisions in Russia:

(1) If the existing arbitration clauses do not indicate a specific arbitration institution, then ask your counterpart to enter into an additional agreement to confirm the original intention of the parties.

(2) In future contracts, approach the preparation of such reservations with special care, make maximum efforts to include in the arbitration agreement all the necessary details regarding the dispute resolution method chosen by the parties fully and with a high degree of certainty.

If you have any questions, please contact Juralink. Our experts will advise you on the optimal wording for modifying and / or drafting arbitration clauses.

We would like to thank you for the co-operation in the past year and we are looking forward to develop new interesting projects with you in the new year. For now we wish you joyfull holidays with family and friends!

According to the migration legislation of the Russian Federation, highly qualified specialists must be registered at their place of stay in Russia within 90 days.

But there are two exceptions:

1. After travelling within Russia and staying in a hotel (the hotel being obliged to register the foreigner at the hotel location:
   > the foreigner has only 30 days to register at his/her regular place of stay.
2. After receipt of a new visa (visa prolongation):
   > the foreigner has only 3 days to be registered at his/her place of stay with the new visa.

Nadjeschda and the Queen of Spades by Tchaikovsky is an special theatrical music performance about the women in Tchaikovsky’s life and their influence on his work. A variation of musical pieces is linked together by a narration about Tchaikovsky’s life and a series of photo portraits made by Dutch photographer Nadja Willems, decendant of Nadjeschda von Meck- patron of Tchaikovsky. We are happy to sponsor the performance.

Performances will take place:

in Moscow (November 1 until December 2, 2018 – http://glinka.museum/visitors/events/?SECTION_ID=3 )

in Klin (November 2, 2018 – https://tchaikovsky.house/category/concert/)

and in St. Petersburg (November 4, 2018 – http://www.obraztsova.org/events_november_18.html).

Russia has not yet published its response to the latest US sanctions. Earlier there were notes about introduction of criminal liability for compliance with US sanctions. But more moderate measures are being considered now:

1. administrative liability for sanctions compliance instead of criminal liability;
2. a framework law for counter-measures against the US and other “unfriendly states”;
3. the increase of import customs duties for certain goods originating from the United States; and
4. the extension of the import ban of 2014 for agricultural products from the US and the EU.

We will keep you updated.

Law № 163 introduces important changes to the registration process of foreign citizens in Russia effective from 08 July 2018. It will affect all foreign citizens working in Russia including highly qualified specialists and their family members.

In particular, it will no longer be permitted that foreign employees (and accompanying family members) or foreign employees invited for a business trip, are registered by their employer at the address of the company office. An exception exists for foreigners residing either in the company’s office or in its premises that are specially equipped for living (special temporary housing buildings). The new law obliges landlords to register foreign citizens at their actual place of residence (i.e. where they sleep).

We would like to remind you that due to the World Cup championship until 26 July 2018 all foreign citizens must register with the migration authorities within three days of arrival. No exception is made for highly qualified specialists, who are normally only required to be registered with the migration authorities within 90 days on arrival.

As a consequence of the new law, in case you arrive in Russia after 08 July 2018 and during the World Cup, we highly recommend you to stay/register with a hotel.

There are no clarifications yet from the state bodies and no information on how the new law will work in practice.

We are in contact with the state bodies on this issue. We will keep you updated!

*Penalty reminder:

According to the Russian Code of Administrative Offences, penalties for not completing the migration registration of foreign citizen in RF are as follows:

1. Art. 18.8 – for foreign citizen – fine from 2 000 rub. up to 7 000 rub. (appr. 27- 95 euro) as well as a risk of administrative deportation.
2. Art. 18.9 – for inviting party: for company’s official – fine from 40 000 up to 50 000 rub (appr. 544 – 680 euro) and for legal entities – fine starting from 400 000 up to 500 000 rub. (appr. 5,441 – 6,801 euro)
3. Art. 19.27 concerning provision of false information about migration registration of foreign citizen for both parties: for foreign citizen – fine from 2 000 rub. up to 7 000 rub. (appr. 27 – 95 euro) as well as a risk of administrative deportation; for company’s official – from 35 000 up to 50 000 rub (appr. 476 – 680 euro) and for legal entities – fine from 350 000 up to till 800 000 rub. (appr. 4,760 – 10,882 euro).

Are you coming to Russia between 25 May – 26 July 2018, and in particular the following cities:
Volgograd, Yekaterinburg, Kazan, Kaliningrad, Moscow, Nizhny Novgorod, Rostov-on-Don, Samara, St. Petersburg, Saransk and Sochi.  Then you must register with the migration authorities within THREE DAYS of arrival.

Did you come to Russia earlier or are you living there, then you must register immediately but NO LATER THAN MAY 25, 2018. Even if you have a HQS permit.

Juralink will be happy to assist in Moscow and St. Petersburg