Russia implements tax law changes in 2016

Transcription

1 26 January 2016 Global Tax Alert Russia implements tax law changes in 2016 EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: Executive summary In Russia, 2014 stood out as a year in which a host of important tax laws were passed with major implications for corporate taxation from 2015 onwards, including laws on de-offshorization, horizontal monitoring and priority development areas. In contrast, 2015 may be seen as a period in which those new laws were tested and refined and deficiencies rectified. This Alert summarizes the key changes in the area of corporate and value added tax which will take effect in Detailed discussion Key profits tax changes New interest rate threshold for ruble loans Federal Law No. 32-FZ of 8 March 2015 made amendments to clause 1 of Article 269 of the Tax Code. In response to the economic crisis, interest rate ranges of from 0% to 180% and from 75% to 180% of the Central Bank rate, depending on the controlled transaction, were set for 2015 for the recognition of interest arising in controlled transactions in the case of debt obligations denominated in rubles.

2 2 Global Tax Alert In 2016, a range of from 75% to 125% of the Central Bank key rate will apply for interest rates for such obligations. This will increase the number of transactions for which interest will be recognized under the transfer pricing rules. Higher value threshold for depreciable property The value at which property becomes depreciable rises from 40,000 rubles to 100,000 rubles. This change was made by Federal Law No. 150-FZ of 8 June The increased threshold will apply to assets brought into use on or after 1 January This development will enable companies to depreciate a larger number of fixed assets more rapidly. It is worth pointing out that the threshold for depreciable property had not previously changed since Key assets tax changes Changes in regard to assets for which the tax base is determined on the basis of cadastral value Federal Law No. 382-FZ of 29 November 2014 Concerning the Introduction of Amendments to Parts One and Two of the Tax Code of the Russian Federation extended the list of immovable property items for which the assets tax base is defined as the cadastral value. Companies which possess immovable property under economic jurisdiction must now calculate assets tax on that property on the basis of cadastral value. The rules requiring the tax base to be determined on the basis of cadastral value previously only applied where an asset was possessed on the basis of ownership. Amendments were also introduced in 2015 regarding the accounting period for taxpayers who calculate tax on the basis of cadastral value. 1 From 2016, the accounting periods for assets tax for such companies will be the first quarter, second quarter and third quarter of a calendar year, but the changes do not affect the calculation of tax. It is important to note that the State Duma is currently in the process of considering two draft laws affecting the relief for movable property which is provided for in clause 25 of Article 381 of the Tax Code in relation to assets which were brought into use after 1 January 2013: Draft Law No provides for the law to be relaxed and for movable property to be exempt even if it is transferred as a result of reorganization/liquidation or receipt from an interdependent person if the property in question was entered in the accounts of the transferring party after 1 January Draft Law No proposes to replace the existing provisions of clause 25 of Article 381 of the Tax Code with a provision allowing regional laws to set a preferential assets tax rate of not higher than 1.1% for such immovable property, except in the case of reorganization/liquidation or cases where it is received from an interdependent person. Key VAT changes Adjustment to the rules for the application of the claim-based VAT reimbursement procedure by taxpayers who are residents of a priority social and economic development area and residents of the Vladivostok Free Port Federal Law No. 214-FZ of 13 July 2015 made amendments to Article of the Tax Code regarding the submission of documents confirming the right to the application of the claim-based VAT reimbursement procedure by taxpayers which are residents of priority development areas. In particular, from 1 January 2016, in order for such taxpayers to confirm their right to preferential VAT reimbursement they will have to submit a surety agreement (or a copy of a surety agreement) to the management company designated by the Government in accordance with the Federal Law Concerning Priority Social and Economic Development Areas in the Russian Federation. The same Federal Law No. 214-FZ amends the procedure for the exercise of the right to claim-based VAT reimbursement by taxpayers who are residents of the Vladivostok Free Port (Article of the Tax Code). In order to exercise that right, when submitting a declaration in which tax reimbursement is claimed, such taxpayers must also submit a surety agreement (or a copy of a surety agreement) to the management company designated by the Federal Law Concerning the Vladivostok Free Port. Extension of the Ban on the Creation of Consolidated Groups of Taxpayers Federal Law No. 325-FZ Concerning the Introduction of Amendments to Part One and Articles and of Part Two of the Tax Code of the Russian Federation, which was signed on 28 November 2015, extended the prohibition on the creation of consolidated groups of taxpayers (CGTs). Unlike the version previously posted on the regulation. gov.ru, the law as passed does not contain a prohibition on participation in CGTs for five years or amendments regarding tax information which may be requested by regional financial authorities for the purpose of preparing and organizing the

3 Global Tax Alert 3 implementation of regional budgets. Furthermore, the period of operation of the prohibition is reduced by one year, ending on 1 January Accordingly, in no agreements on the creation of CGTs will be registered, and those registered during will be considered non-registered. Other changes introduced by this law include the following: A CGT must be created for no less than five years (it was previously two years). This limit will apply to CGTs registered after 1 January A reorganized member cannot be excluded from a CGT if it continues to meet the requirements for CGT members. A CGT member will not be able to withdraw voluntarily earlier than five years after joining the CGT. This will apply to CGTs registered after 1 January The indicators for determining the profits tax base that are laid down in the agreement on the creation of a CGT must remain unchanged for the entire term of the CGT agreement. To summarize, the new legislation freezes the creation of new CGTs for , while it remains possible for existing CGTs to admit new members through reorganization. Endnotes 1 Federal Law No. 327-FZ of 28 November 2015 Concerning the Introduction of Amendments to Part Two of the Tax Code of the Russian Federation.

4 4 Global Tax Alert For additional information with respect to this Alert, please contact the following: Ernst & Young (CIS) B.V. Cross Border Tax Advisory, Moscow Vladimir Zheltonogov Marina Belyakova Ernst & Young (CIS) B.V. Customs & Indirect Tax, Moscow Vitaly Yanovskiy Ernst & Young LLP, Russian Tax Desk, New York Julia Samoletova

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