During the spring of 2022, Russia developed and implemented measures to support small and medium-sized businesses in response to the global situation.

swilar specialists have selected the novelties that are relevant for businesses with foreign capital and have prepared a digest of the measures taken.

The full list can be found on the support measures summary page of the Russian Government website. 

Tax support measures

1. Income tax measures:

• Organisations have the right to switch to monthly advance payments based on actual profit, starting from an accounting period of three months, four months and so on until the end of 2022 (applicable from 01.01.2022).

• Foreign exchange gains arising between 2022-2024 and foreign exchange losses arising between 2023-2024 are only taken into account when settling foreign currency claims that have arisen. Prepayments are not subject to this rule (in force from 01.04.2022).

• When determining the tax base, debts written off by foreign organisations and foreign nationals of Russian organisations under loan and credit agreements concluded before 1 March 2022 will not be taken into account in 2022. No exemption is proposed in relation to debt forgiveness by Russian lenders/creditors.

Undercapitalisation rules will apply a fixed foreign exchange rate as of 01.02.2022.

2. VAT measures:

VAT refunds from the budget on a declaratory basis (i.e. in advance) are possible without a bank guarantee or security if the conditions for the application of the measure are met:

• the organisation is not in bankruptcy, liquidation or reorganisation and

• the amount of the refund claimed does not exceed the aggregate amount of taxes and insurance contributions paid in the calendar year preceding the claim.

The new rules on accelerated VAT refunds will be valid for the tax years 2022 and 2023. The audit of VAT returns has not been abolished, but its completion is no longer a prerequisite for obtaining a refund.

3. Personal income tax measures:

• Income tax is not applied to material benefits, interest on deposits and material support (gifts) received by certain categories of citizens in 2021-2023;

• Controlling persons or founders of foreign organisations (as of 31.12.2021) who have received property or property rights from these organisations in 2022 are exempt from paying personal income tax on this type of income.

• Inspections of compliance with currency legislation regarding violations under the Federal Law “On Currency Regulation and Control” have been suspended

• From 09.03.2022 to 01.06.2022, tax authorities have suspended decisions to freeze operations on bank accounts when recovering money from debtors' accounts (blocking accounts)

• For objects whose cadastral value will increase in 2022 due to the economic situation, the cadastral value as at 01.01.2022 will be taken into account when calculating tax for 2023.

In Moscow, measures have been announced for a so-called “covid amnesty“, which will reimburse previously paid fines for violations of any covid restrictions other than non-compliance with isolation during a COVID-19 infection.

Subsidies will be available to companies and individuals to reimburse previously paid fines.

In order to receive the subsidies, it is necessary to apply to the Moi Dokumenty Centres by 31.12.22 and provide the administrative penalty order and proof of payment of the fine.

The measure can be used from 01.06.2022; application forms are available on the website mos.ru.

6. Moratorium for currency enforcement inspections

The moratorium became effective on 1 June and will run until 31 December 2022. It implies the suspension of most control activities that concern compliance with currency legislation, but will not affect inspections in which violations have already been detected previously, the expiry date of which is 31.12.22.

Also, the moratorium will not affect violations of regulations that were adopted after 27.02.22 as special economic measures in response to the sanctions.

We keep up to date with the latest developments and help our clients to keep their business processes running smoothly.