Category: News
CFO – Payments to friendly countries as of June 2024
Daria Pogodina presented an up-to-date overview of the regulation of cross-border settlements with so-called friendly jurisdictions, highlighted the requirements of currency legislation, the practice of banking support and the nuances of interaction with the government commission. The report was aimed at financial directors and aroused keen interest due to its practical focus and relevance.
Planning the budget and financing of the company during the liquidation period
Eugenia Chernova spoke at a joint meeting of the Legal Affairs Committee, the Accounting Group and the Controlling Group with a report on “Planning the budget and financing of a company during liquidation”. The speaker covered key aspects of financial planning at the final stage of a company’s activities, including cost control, optimization of resource allocation, tax implications and interaction with counterparties. Both legal and accounting nuances were considered, which made the report especially useful for specialists involved in the liquidation process.
Article “Association Russian-Turkish Dialogue. PRACTICE of international payments in current conditions”
Daria Pogodina wrote an article for the Russian-Turkish Dialogue Association on the topic of “International Payment Practices in Current Conditions”. In the article the speaker analyzes in detail the changes in the regulation of international settlements and their impact on businesses working with Turkey. New challenges arising in cross-border payments are considered, as well as practical recommendations for using alternative payment systems and minimizing risks. Particular attention is paid to issues of compliance with legislation and optimization of financial transactions in the context of instability in international markets.
“Russia – Turkey: from import-export to investment cooperation”
Daria Pogodina covered current mechanisms of cross-border settlements, features of interaction with Turkish counterparties, currency control requirements and banking practices. Particular attention was paid to opportunities for simplifying settlements and reducing associated risks. The article aroused interest among participants working in the field of foreign economic activity and investment.
French Chamber – situation with payments to friendly countries as of May 2024
Daria Pogodina spoke at the meeting organized by the French Chamber of Commerce and Industry. During her speech Daria covered the current rules for settlements with jurisdictions that are not subject to sanctions restrictions including the specifics of currency control, requirements for justifying payments and interaction with banks. The report was accompanied by practical recommendations and answers to questions from participants, which made it especially useful for companies with an international structure.
FSBU 27/2021 and new sanctions restrictions in terms of impact on the IT sector: risks, deadlines, necessary actions
Daria Pogodina spoke at a joint meeting of the Legal Affairs Committee, the Accounting Group and the Controlling Group with a report “FSBU 27/2021 and new sanctions restrictions in terms of their impact on the IT sector. Review.” During her speech Daria highlighted the key changes in the accounting of intangible assets in accordance with the FSBU 27/2021 and analyzed the impact of new sanctions on the IT sector. Practical aspects of implementing new standards in the context of sanctions restrictions were considered and solutions to minimize risks were proposed. The report was useful for specialists working with IT companies and in the field of accounting.
New in the rules for issuing permits by the government commission
We bring to your attention a review of the latest changes in the procedure for transactions with shares of OOOs with participants from unfriendly countries.
We would like to remind you that any transactions or groups of transactions with securities of Russian legal entities and/or shares constituting the share capital of Russian legal entities require obtaining permits from the Government Commission and performing a number of procedures (obtaining an independent assessment, establishing KPIs, etc.).
On 23.01.2024, Decree of the Government of the Russian Federation dated 22.01.2024 No. 40 “On amendments to the Decree of the Government of the Russian Federation dated 06.03.2022 No. 295” (hereinafter – the “Decree No. 40”) was published, which contains some clarifications of the procedure.
Decree No. 40 established the need to comply with certain previously formulated conditions for obtaining permits (see Extract from the decision of the subcommission dated 07.07.2023 No. 171/5) and made some additions.
In particular, it is now established at the regulatory level (clause 5 (1) of the Rules approved by the Decree of the Government of the Russian Federation dated 06.03.2022 No. 295, hereinafter – the “Rules”) that the following information must be additionally included in the application for a permit:
- report on an independent assessment of the market value of the relevant securities of Russian legal entities and/or shares constituting the share capital of Russian legal entities.
This assessment must be carried out by an appraiser engaged in private practice and included in the list of appraisers (appraisal organizations) recommended by the subcommission to carry out such an assessment, or by an appraiser who has entered into an employment contract with a legal entity included in such a list (paragraph 3 of clause 1 of Decree No. 40). The right to determine the specified list is granted to the subcommission (clause 8 of Decree No. 40).
- key performance indicators and their target values for buyers, proposed as conditions for the implementation of transactions or a group of transactions.
Decree No. 40 also details the procedure for monitoring the achievement of key performance indicators.
In particular, Decree No. 40 clarifies who will monitor the implementation of the set KPIs (performance indicators). Monitoring of achievement of indicators and their target values will be carried out by:
- federal executive authorities (in each case, the authority will be determined depending on the scope of activity of the legal entity or party to the transaction), and (or)
- the Central Bank of the Russian Federation,
on the basis of documents confirming the achievement of these indicators and their target values, submitted within the time limits established in the decisions of the subcommission (clause 8 of Decree No. 40).
Please note that, in accordance with the clause 5 (2) of the Rules, the requirement to include additional information in the application in the form of an independent assessment report, as well as KPIs, does not apply to transactions and operations:
- between persons included in the same group of persons in accordance with competition law,
- between persons associated with unfriendly countries.
Additionally, you can read our previously published reviews on the topic: on the procedure for issuing permits for transactions with shares in the share capital of OOOs, on the conditions for obtaining permits for transactions with shares in OOOs, as well as on changes to these conditions.
We will be happy to answer your questions!
Contacts:
Maria Matrossowa
Yulia Belokon
Submission of information about members of a foreign organization
Please note that all representative offices and branches of foreign companies are required to submit information about the members and beneficiaries of their parent structures to the tax authority by 28.03.2024.
According to the clause 3.2 of the article 23 of the Tax Code of the Russian Federation, foreign organizations (FO), as well as foreign structures without formation of a legal entity (FSWFLE), are obliged annually no later than March 28:
- to submit information about the members of such a FO (for FSWFLE – information about its founders, beneficiaries and managers) as of December 31 of the year preceding the year of submission of the specified information to the tax authority at the place of their registration, as well as
- to disclose the procedure for indirect participation (if any) of an individual or public company in the event that the share of their direct and/or indirect participation in the FO (FSWFLE) exceeds 5%.
This obligation does not apply to foreign companies that are registered with the Russian tax authorities only because of the provision of services in electronic form, as well as to subsidiaries (OOO) with foreign participation.
The form of communication about the members of a FO (for a FSWFLE – about its founders, beneficiaries and managers), the format of its submission in electronic form, as well as the procedure for filling in the form are approved by the Order of the Federal Tax Service of Russia dated 01.12.2021 No. ED-7-13/1046@.
Wrongful failure to submit (untimely submission) by a foreign organization (foreign structure without formation of a legal entity) of the above information to the tax authority entails a fine of 50,000 RUB (clause 2.1 of the article 129.1 of the Tax Code of the Russian Federation).
You can find information previously published by us on this topic here.
We will be happy to answer your questions and offer our assistance in creating the report.
WG Accounting of AHK
During her speech, Yevgenia Chernova covered in detail the key changes in the rules of transfer pricing, which came into force at the beginning of 2024. Special attention was paid to the practical aspects of the application of new norms for companies operating in a special economic zone. The presentation aroused great interest and became a reason for discussion among the participants.
Review article “CHANGES IN 2024: Double Taxation Agreements (DTAs), Transfer Pricing, Offshoring and other news”
Exclusively for the Russian Business Guide magazine, Daria Pogodina, Managing Director of swilar presented a review article “CHANGES IN 2024: Double Taxation Agreements (DTAs), Transfer Pricing, Offshoring and other news” providing detailed step-by-step analysis of the changes and their consequences.
You can read the article online in Russian or English, or download two-language article in pdf-format by clicking the “Download ru” button below the message.