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We would like to remind you that starting fr om December 29, 2021 (with the Federal Law № 274-FZ fr om 01.07.2021 coming into force) the new migration legal requirements, which require foreign citizens to undergo dactylography and photographing as well as a mandatory medical examination. This requirement concerns:
• those arriving in Russia for the purpose of carrying out labor activities and
• foreign citizens arriving to the Russian Federation for other purposes for a period exceeding 90 calendar days.
For your convenience, we have compiled for you the addresses of clinics/stations in Moscow wh ere you can apply to get the necessary procedures.

Dactyloscopy and photography

Duration of procedures:
Within 30 calendar days from the date of entry into the Russian Federation or when applying for a patent or a work permit.

Where you can get it done:
1. At the Multifunctional Migration Center in Sakharovo on the day of the receipt of the work permit.
Address: Moscow, Troitskiy AO, Voronovskoe settlement, Varshavskoe highway, 64th km, bld. 1/47.
Opening hours: from Monday to Sunday from 08.00 to 20.00.
!! Here you can also undergo necessary medical examinations.
2. In the State Budgetary Institution “Migration Center” only for foreign citizens who came to Russia to perform labor activities.
Opening hours: from Monday to Friday from 09.00 to 18.00
!! Here you can also submit documents about the medical examination.

What documents are required:
To undergo dactyloscopy and photography, a foreign citizen must present the following documents:
• passport and a notarized translation of the passport;
• certificate of absence of disease caused by human immunodeficiency virus (HIV infection);
• documents confirming medical examination.

Period of validity:
Dactyloscopic registration and photographing are taken once; the documents are valid indefinitely. In case of loss of documents confirming the passing of fingerprinting and photographing, duplicates of these documents can be obtained.

Medical examinations

Time requirements for medical examinations:
• for foreign citizens arriving in Russia for labor purposes – within 30 calendar days from the date of entry into the Russian Federation. At the same time the foreign citizen is obliged to present these documents to migration authorities within thirty days from the date of entry;
• for other foreign citizens – within 90 calendar days from the date of entry into the Russian Federation.

What documents are required:
• passport and notarized translation of the passport;
• migration card;
• registration at the place of residence.

Where you can get it done (in Moscow):

1. CENTRAL DEPARTMENT FOR SPECIALIZED MEDICAL CARE
Address: Leninsky Prospekt, 17, room 56.
Phone: 8 499 558-58-28, 8 495-952-34-22.
Opening hours: from 09.30 to 13.00 on working days according to the order of the person in the line.
Range of necessary medical examinations: except fluorography.

2. Kutuzovsky clinic
Address: 41 Kutuzovsky Prospekt.
Phone: 8 499-249-25-55, 8 499 558 58 28.
Opening hours: working days from 09.00 to 15.00.
Range of necessary medical examinations: except fluorography.

3. Clinic named after V.G. Korolenko
Address: 3, Kosinskaya str.
Phone: 8 495-770 -09-83.
Opening hours: working days from 09.00 to 15.00.
Range of necessary medical examinations: There is no information about the possibility of fluorography.

4. Proletarsky clinic
Address: 22 Melnikova St.
Phone: 8 495-674-36-24, 8-499-558-58-28.
Opening hours: working days from 09.00 to 15.00.
Range of necessary medical examinations: except for phthisiatrician.

5. Ostankinsky clinic
Address: 103, Prospekt Mira St.
Phone: 8-495-682-30-91, 8-495-682-30-80.
Opening hours: working days from 09.00 to 15.00.
Range of necessary medical examinations: There is no information about the possibility of fluorography.

6. Sakharovo Multifunctional Migration Center – Branch “Multifunctional Medical Center of Labor Migration”
Address: Moscow, Troitskiy AO, Voronovskoe settlement, Varshavskoe highway, 64th km, bld. 1/47.
Opening hours: from Monday to Sunday from 08.00 to 20.00.
Full range of necessary medical examinations, including fluorography: yes.

7. State Budgetary Institution “Moscow City Scientific and Practical Center for Fighting Tuberculosis of the Department of Health of the City of Moscow”.
Address: 18, Dokukin St.
Phone: 8-499-187-78-72, 8-499-187-90-77.
Opening hours: 8.00-20.00, Saturday from 9.00-16.00.

Full range of necessary medical examinations, including fluorography: Yes.
Please note that the approximate time to take the tests takes 3 hours. Term of preparation of the medical report after examination and tests takes up to 7 working days.

Wh ere to submit the results of the medical examination
The results of the medical examination must be submitted in person to the migration authorities, considering the deadlines established by law.

You can submit the results of the medical examination:

1. At the Multifunctional Migration Center in Sakharovo on the day of the receipt of the work permit.
Address: Moscow, Troitskiy AO, Voronovskoe settlement, Varshavskoe highway, 64th km, bld. 1/47.
Opening hours: from Monday to Sunday from 08.00 to 20.00.

2. In the State Budgetary Institution “Migration Center” only for foreign citizens who came to Russia to perform labor activities.
Opening hours: from Monday to Friday from 09.00 to 18.00
!! Here you can also undergo dactyloscopy and photography.

First-hand comment from our foreign colleague.

I came to Russia at the beginning of January and, therefore, had to undergo a medical examination and fingerprinting.
I had a medical check-up in the medical center at 18 Dokukin St., because you can take all the analyses there and there is no need to go to other institutions. The line (without an appointment, the principle of a live line) was already quite long at 10 o’clock in the morning, so it is advisable to come early. The staff is friendly and helpful, but if you do not speak Russian, it is worth bringing an interpreter.
I ended up spending 4 hours in the clinic, including 3 hours in line, the tests themselves were done within an hour.
I received the results in 7 working days in the same building.
For fingerprinting I decided to go to the migration center in Sakharovo. I arrived by public transportation at 8 am and was directed to Gate 1 (for work permit holders). It took me 1.5 hours to get a voucher, then another 2 hours before I could get fingerprinted and photographed. It takes 4-6 business days to get confirmation that all the documents have been submitted.
Including the drive there and back, the whole procedure took me 10 hours. The staff is friendly and diligent, but the process on site is very unclear.

Summary of the procedure

Let’s summarize the order and steps of the above procedures:
1. Have your tests done at one (or several, in case one of the specialists/examination options is not available at the chosen center) of the medical centers listed above.
2. Receive test results from the appropriate medical center after 7 business days.
3. Get fingerprinted and photographed.
4. After all the procedures you will get a fingerprint card with. The information will be sent for registration to the information center of the Main Directorate of the Ministry of Internal Affairs in Moscow.

Please note that the information in the overview is relevant as of the date of this posting. The procedure is being clarified, and information may change. We recommend you to clarify the information before you visit a clinic or an authority.

We would like to remind you that from 01.01.2022, the application of the standards FAS 6 “Fixed Assets” and FAS 25 “Accounting of Leases/Rentals” is mandatory.
Much has been written and said about the new FAS. We, for our part, have been reviewing the standards in our newsletters and webinars.
However, even with the information available from open sources, accountants have many practical questions about how to apply the new standards in their company. There are a number of issues that need to be resolved individually for each company.

For example:

• What discount rate should be used when calculating lease payments?
• How should cash flows be determined and at what rate should they be dis-counted in an impairment test?
• For which assets will the residual value be non-zero and how should the re-sidual value be determined?
• How do I make adjustments to a lease agreement?
• What entries should be made when the asset is impaired, when the asset is revalued?
• Which points should be changed/added in the accounting policy?
• and many others

Drawing on our extensive experience with international accounting standards, as well as a large number of real-life cases from clients, we can offer “emergency assis-tance” to accountants in answering these relevant and important questions.
In case you have difficulties and/or questions regarding the application of the new lease or fixed asset standards, send us an email with the subject “Question on the new FAS”. We will answer quickly and to the point.

On 29 November 2021, with the adoption of Federal Law No. 382-FZ, changes to the tax treatment of leasing transactions were introduced.

Changes affecting the calculation of property tax – clause 49 of Law 382-FZ makes amendments to Article 378 of Chapter 30 of the Tax Code, meaning that the tax for rented property, including finance lease (leasing) agreements, is payable by the lessor.

Changes affecting the calculation of profit tax:

• Law 382-FZ (clause 21) excludes clause 10 of Article 258 of the Tax Code, which allows the lessee or lessor to depreciate the leased property depending on who records the leased asset on their balance sheet under the terms of the agreement. In other words, the lessee will no longer be able to depreciate the leased asset in tax accounting starting from 2022, as was the case previously if the lessee accounted for the leased asset on their balance sheet – with the introduction of the changes, the leased asset will only be considered depreciable property by the lessor in tax accounting;
• clause 23 of the adopted law also changes the procedure for calculating profit tax in terms of how expenses under leasing agreements are recognised (sub-clause 10, clause 1 of Article 264 of the Tax Code) – if the payments under the agreement include the purchase price of the leased asset, which passes into the lessee’s ownership after the agreement ends under a sales agreement, the leasing payments are recognised as expenses less the purchase price;

Accounting for the purpose of paying transport tax does not change with the entry into force of Law 382-FZ.

The Federal Law comes into force on 1 January 2022.

In our message No. 6/2021 dated 06/11/2021, we informed about the planned changes in the workflow regulations, which could have a significant impact on the work of companies that use ERP systems hosted on servers located outside the territory of the Russian Federation.

On December, 24th 2021 the Ministry of Finance of Russia issued information message No. IS-Uchet-35 on the adoption of Order No. 224n dated 23.12.2021, according to which the due date for the requirement to store accounting documents on the territory of the Russian Federation, according to the Federal Accounting Standard FAS 27/2021, is postponed from January, 1st 2021 to January, 1st 2024.

The amendments were adopted in order to provide conditions for the organizations for proper preparation to store accounting documents in the Russian Federation, by postponing the due date of paragraph 25 of FAS 27/2021 from January 1st , 2022 to January 1st, 2024.

It is noted that the due date of the beginning of whole FAS 27/2021 standard remain in force, with the exception of paragraph 25 of FAS 27/2021 on the storage of accounting documents, data contained in such documents, and the placement of databases on the territory of the Russian Federation, which is subject to mandatory application from January 1st, 2024.

Information message No. 6/2021 with a detailed review of FAS 27/2021 can be found found at the following link.

We will be glad to answer your questions!

Оn January 1, 2022, the Resolution of the Government of the Russian Federation №1951 dd. 16.11.2021 comes into force. It concerns increasing the rate limit for insurance payments in cases of temporary disability and maternity, and also mandatory pension insurance:

• The rate limit for social insurance, in cases of temporary disability and maternity, for each individual does not exceed 1,032,000 rubles on a cumulative basis starting fr om the 1 January 2022;
• The rate limit for mandatory pension insurance does not exceed 1,565,000 rubles on a cumulative basis starting from the 1 January 2022 for each individual.

The payments for health care insurance and social payments in case of injuries will have to be made on the basis of all the taxable incomes irrespective of their amount. There will be no lim it for them, as before.

We would like to draw your attention to the fact that starting fr om January 1, 2022 a new standard for accounting for fixed assets (hereinafter referred to as FA) is mandatory for usage – FAS 6/2020.

The corresponding changes were made by the Order of the Ministry of Finance N204n dated September 17, 2020. Before transition to the new standard, we recommend that you do the following:

• Establish a limit on the cost of fixed assets to allocate the cost of an asset to the FA or the low-value FA category;
• Conduct an inventory of fixed assets and other assets that, in accordance with FAS 6/2020, could be classified as fixed assets based on the new cost limit;
• Make appropriate changes to the accounting policy of the Company;
• Determine the useful life period of the FA and the terms of the annual testing of it for relevance;
• Sel ect the method of subsequent accounting of the FA (after initial recognition), at initial or revalued cost;
• Determine the liquidation value (hereinafter referred to as LV) of fixed assets on the balance sheet of the enterprise. and the timing of the annual LV assessment;
• For the method of assessing fixed assets at a revalued cost, establish the frequency of revaluation of fixed assets for each group of revalued fixed assets;
• Reflect changes in the organization’s balance sheet as of 01.01.2022 using incoming adjustments;
• Disclose relevant information in the accounting (financial) statements of the company.

What does this mean in practice?

According to the new standard, an organization has the right to independently set a cost limit for classifying an object as a fixed asset, in the contrast to the previously existing limit of 40,000 rubles.

With an increase in the limit (if, for example, an organization decides to set it at the level of 100,000 rubles in order to make it equal to the FA limit in tax accounting), some fixed assets may no longer meet the accounting FA lim it criteria and will need to be reclassified as low-value FA, writing off the net book value of the period as an expense (clause 5 of FAS 6 / 2020), while it will be still necessary to keep inventory and off-balance sheet records of such objects.

The standard introduces the concept of residual value – the amount that an entity would receive if an item were disposed of (including tangible assets remaining after disposal), less the estimated disposal costs at the time of disposal. A LV of the particular can be equal to zero if at the end of the UL no more benefits are expected fr om the disposal of the object, if receipts are expected, but they are not material, or if it is impossible to determine how much will be received upon disposal of an asset (paragraph 31 of FAS 6/2020). 

The liquidation value of fixed assets should be systematically (at least, at the end of each year) analyzed for changes and, if necessary, adjusted (clause 37 of FAS 6/2020).

Also, the innovation of the standard – the accrual of depreciation on fixed assets is not suspended (including in cases of downtime or temporary break in the use of fixed assets), except for the case when the residual value of an item of fixed assets becomes equal to or exceeds its book value (hereinafter BV). If subsequently the residual value of such an item of fixed assets becomes less than its book value, depreciation is resumed on it (paragraph 30 of FAS 6/2020).

What should be done?

According to paragraphs 48-49 of FAS 6/2020, the consequences of a change in accounting policy associated with the beginning of the application of the new standard should be reflected retrospectively – as if the specified standard had always been applied.

It is necessary to recalculate and adjust the balance sheet statement in the part of fixed assets as of 01.01.2022, in case there was no early application of the standard, and also determine the BV – the initial asset cost less accumulated depreciation. The initial cost should be calculated according to the previously existing rules, and the accumulated depreciation – according to the norms of the new standard (clause 49).

Prospective application of the standard, without incoming adjustments at the beginning of the year, is possible only for organizations that are entitled to use simplified accounting methods, including simplified accounting (financial) statements (paragraph 51 of FAS 6/2020).

We will be happy to answer your questions!

We would like to pay your attention to the fact that the changes specified in the Federal Law No. 274-FZ of July 01, 2021 “On the introduction of amendments to the Federal Law “On the legal status of foreign citizens in the Russian Federation” and the Federal law “On state fingerprint registration in the Russian Federation” shall become effective from December 29, 2021.

According to the Federal Law No. 274-FZ of July 01, 2021 foreign citizens who have arrived in the Russian Federation for working purposes (including highly qualified specialists) shall be subject to mandatory medical examination for substance abuse, infectious diseases that constitute a danger to the public, as well as HIV infection, to state fingerprint registration and photography within 30 calendar days from the date of arrival in the Russian Federation or from the date of receipt of work permission documents.

Besides, foreign citizens who have arrived in the Russian Federation for purposes other than work for a period exceeding 90 calendar days shall be subject to the abovementioned mandatory medical examination, mandatory state fingerprint registration and photography within 90 calendar days from the date of arrival in the Russian Federation.

State fingerprint registration and photography of foreign citizens will need to be completed once.

The medical examination must be repeated multiple times depending on period of validity of medical certificates. It is necessary to mention that in accordance with the clause 20 of the Ministry of Healthcare of the Russian Federation Order No. 1079нof November 19, 2021 that enters into force from March 01, 2022, medical certificates issued to foreign citizens will be in force within 3 months from their issuance. The Law specifies the procedure for repeated medical examination and submission deadline of its results to the territorial authority of the Ministry of Internal Affairs of the Russian Federation within 30 calendar days from the date of expiry of medical certificates. The results of the medical examination are to be submitted by a foreign employee in person or through the Russian unified portal of state and municipal services (Gosuslugi).

If a foreign citizen fails to comply with the above-mentioned mandatory procedures, the period of his residence is reduced and he will be obliged to leave the territory of the Russian Federation.

Comment of swilar Moscow General Director Daria Pogodina for the December issue of the Russian-German Chamber of Commerce briefing

We remind you that starting from January 1, 2021 important changes concerning the transport tax came into force.

For your convenience, we have made an overview of the main changes and recommendations on their application.

From January 1, 2021 the obligation of organizations to provide tax returns on transport tax for 2020 and subsequent tax periods (clause 17 of Article 1 of the Federal Law № 63-FZ of 15.04.2019, Federal Tax Service Order of 04.09.2019 Nr. MMV-7-21/440) was canceled.

Also, from this date uniform deadlines and advance payments for payment of transport tax were introduced for all organizations:

• the tax is to be paid no later than March 1 of the year following the expired calendar year;
• advance payments, if they are introduced by the law of the Federal subject of the Russia, are to be paid not later than the last day of the month following the expired quarter.

Starting from 2021 organizations must calculate and pay transport tax on their own (clause 1, Article 362 of the Tax Code of the Russian Federation).

The total amount of tax is calculated for each transport vehicle as the multiplication of tax base and tax rate with the multiplying coefficient (clause 2, Article 362 of the Tax Code of the Russian Federation).

The rates are set by the Federal subjects of Russia within the limits specified in the Article 361 of the Tax Code of the Russian Federation.

Organizations that have the right to transport tax benefits must send to the tax authority an application for a tax benefit (Article 361.1 of the Tax Code of the Russian Federation). At the same time organizations are also entitled to submit documents confirming the right to this benefit with the application.

The form of an application for a tax benefit is prescribed by Order No. ММВ-7-21/377@ of the Federal Tax Service dd. July 25, 2019.

From 2022, taxpayers will submit to the tax authority an application for a tax benefit in the form as amended by Order of the Federal Tax Service of Russia No. ED-7-21/574@ of 18.06.2021.

The Tax Code does not set a deadline for filing an application.

An application for tax benefit shall be considered by the tax authority within 30 days from the date of its receipt. This period can be extended in case of necessity for the tax authority to request information confirming the taxpayer’s right to tax benefit from other authorities and persons who have such information. In this case, the taxpayer shall be notified of the extension of the deadline for review of the application.

After considering of the application, the tax authority shall send to the taxpayer:

• notification on granting tax benefit;
• notification of refusal with the explanation of the grounds for refusal.

In order to ensure the full payment of tax, from 2021 the tax authorities will send taxpayers messages about the amount of tax calculated by the tax authorities (paragraph 4 of Article 363, paragraph 5 of Article 363 of the Tax Code).

The tax will be calculated basing on the information available at the tax authority:

• from the authorities that register vehicles – the Traffic Police;
• according to the information about the declared tax benefits received from the owners of vehicles.

Deadlines for mailing tax notices:

• Six months from the date the tax payment deadline expired (e.g., the notification for 2020 must be received by the taxpayer no later than September 1, 2021);
• Two months from the date of receipt of information on the recalculation of the tax;
• One month from the date of receipt of information from the Unified State Register of Legal Entities (EGRUL) that the company is being liquidated.

Tax notification is sent to the taxpayer via telecommunications, personal account on the website of the tax office, or by regular post (if it is impossible to notify by other means).

However! Please note that the above-mentioned notification is informative in nature and is sent to the taxpayer after the expiration of the tax period and the deadline for tax payment, and, consequently, does not cancel the obligation of the taxpayer to calculate and pay the tax on his own in the accordance with the law requirements.

Shall the tax amount independently calculated and paid by the taxpayer not match the data specified in the tax notification, within ten working days from the date of receipt of the message about the calculated tax amount the organization (tax payer) can send to the tax inspection its explanations and documents confirming: the correctness of the calculation, completeness and timeliness of the tax payment, the validity of the use of lower tax rates, tax benefits or the existence of the grounds for tax exemption (paragraph 6 of Article 363 of the Tax Code).

The term for considering the application is one calendar month. Shall the term take longer, the tax authorities are obliged to notify the taxpayer.

According to the results of consideration the taxpayer will receive:

• A message on recalculation of the amount to be paid, considering the explanations, evidence and arguments provided;
• A demand for additional payment if the taxpayer’s explanations are not accepted by the Federal Tax Service.

Also, starting from 2021 taxpayers are obliged to send a report on the owned transport vehicles which are considered to be objects of taxation. This obligation applies in case of non-receipt of a message about the amount of transportation tax calculated by the tax authorities concerning objects of taxation for the whole period of their ownership (Letter of the Federal Tax Service of Russia of 29.10.2020 N BS-4-21/17770@).

A report must be sent to the tax authority by the 31 December of the year following the expired tax period with the attachment of documents confirming the state registration of vehicles.

Wrongful non-submission (untimely submission) of the report leads to the fine at the rate of 20% of the unpaid tax amount of the vehicle, the report about was not submitted (untimely submitted) (clause 3 of article 129.1 of the Tax Code of the Russian Federation).

The standards for filling in the report on the owned transport vehicles have been determined by the Order of the Federal Tax Service No. ED-7-21/124@ dated 25.02.20.

Sending the above-mentioned report is not required if organization sends an application for a tax exemption in relation to the relevant object of taxation.

If you have any questions, we will be happy to offer you additional information on this topic.