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Russian Legal Update 10/2012

12 November 2012

1. PUBLIC ADMINISTRATION

Russian Government Sets Official Holiday Schedule for 2013.

Cancelled Weekend Day or Day Off
Saturday, 5 January
Sunday, 6 January
Monday, 25 February

Day Off in Place of Cancelled Day
Thurs., 2 May
Friday, 3 May
Friday, 10 May

As a result, the following uninterrupted periods will be non-working holidays:

  • 30 December 2012 – 8 January 2013 (considering days off from 2012)
  • 1 May – 5 May 2013
  • 9 May – 12 May 2013

Russian Federation Government Decree No. 1048 dated 15.10.2012 on Transferring Days Off in 2013

New Provision Approved on Licensing Chemically Hazardous Production Facilities

The Russian government has recently approved a new list of licensing requirements for chemically hazardous production facilities, the method in which licenses are received and re-issued, and the types of work performed on such facilities.

Russian Federation Government Decree No. 992 dated 27.09.2012 on Licensing Operations of Chemically Hazardous Production Facilities

Adjustments Made to Method for Determining Sanitary Protection Zones

After a property is commissioned, the borders of its sanitary protection zones must be confirmed with field research. Based on the results of such research, the sizes of sanitary protection zones of existing properties may be reduced.

Letter No. 01/9550-12-32 from the Federal Service on the Surveillance of Consumer Rights Protection and Human Well-Being dated 24.08.2012 on Explanations of Various Provisions in SanPin 2.2.1/2.1.1.1200-03 (new edition)

2. IMPORT/EXPORT

Federal Customs Service of Russia Publishes List of Products Requiring Conformity Assurance when Imported under Customs Regimes Permitting their Sale or Use in Customs Territory of Russian Federation

Information from the Federal Customs Service of Russia dated 10.10.2012 on Products which Require Conformity Assurance when imported under customs regimes which allow for their disposal or use in Accordance with their designated purpose in the customs territory of the Russian Federation when stating “TN VED TS” Codes

3. TAXATION

Federal Tax Service of Russia Publishes Responses to Common Questions on Use of Cash Register Technology and Requests from Tax Authorities Regarding Bank Paying Agents (Sub-Agents)

Letter No. AS-4-2/14961@ on Sending Explanations

Payment Method of VAT Explained for Cases When Extra Payment for Goods is Deducted from Future Orders

VAT calculated by a seller on the amount of an advance payment should be deducted when determining the tax based on the date of delivery of a new shipment of the goods.

Letter No. ED-4-3/15920@ of the Federal Tax Service of Russia dated 24.09.2012 on Applying the Deduction of Value-Added Tax Calculated with an Advance Payment if the Value of the Shipped Goods is Reduced

Federal Tax Service of Russia Gives Explanation on Method for Determining Tax Base for VAT for Exported Goods, Work, and Services with 100% Advance Payment in Foreign Currency

Foreign currencies must be calculated in RUB (Russian rubles) for VAT at the exchange rate set by the Central Bank on the date of delivery (transfer) of the goods, work, or services.

Letter No. ED-4-3/16657@ of the Federal Tax Service of Russia dated 03.10.2012 on Sending a Letter of the Ministry of Finances of Russia”

Part of VAT May be Compensated by Application upon Provision of a Bank Guarantee for Part of Taxes

Provision of a bank guarantee to the tax authorities for a part taxes to be compensated in accordance with a VAT declaration and stated in an application to use the application method for taxes does not contradict set rules.

Letter No. ED-4-3/17586@ of the Federal Tax Service of Russia dated 17.10.2012

4. ACCOUNTING

Simplified Forms Approved for Accounting Balance Sheets and Profit and Loss Statements for Small Businesses

Ministry of Finances Order No. 113n dated 17.08.2012 on Making Amendments to Ministry of Finances Order No. 66n dated 02 July 2010

Forms for Statistical Observance of Businesses and Instructions for Filling Them Out Are Approved

The new forms will apply starting in 2012 (for annual reports), January 2013 (for monthly reports), and January-March 2013 (for quarterly reports).

Federal State Statistics Order No. 470 dated 29.08.2012 on Approving Statistical Instruments to Organize Federal Statistical Observance of Business

5. EMPLOYMENT

Based on Work Area Certifications, Employers May Now Independently Set Higher or Additional Compensation for Difficult Work and Work under Hazardous/Dangerous Conditions

Information from the Ministry of Labor and Social Policy dated 01.10.2012 (Explanations on the Method for Giving Employees Employed under Hazardous and/or Dangerous Work Conditions Shorter Working Hours, Additional Annual Paid Vacation Time, and/or Increased Salary in accordance with Clause 1 of Russian Federation Government Decree No. 870 dated 20 November 2008.

State Duma Passes Final Version of Bill to Amend Article 261 of Labor Code of the Russian Federation Prohibiting Dismissals of Fathers who are Bread Earners for Families with More than One Child and/or Young Children

Bill No. 62352-6

6. NOTARY

Unified Information System to be Introduced in 2014

The unified information system will include registers:

  • Certifying wills and cancellations of will
  • Certifying powers of attorney and notices on their revocation
  • Opening probate administrations
  • Certifying prenuptial agreements
  • Notifying on pledges of immovable property

Information in the register of notices on pledges of immovable property will be available online.

7. INTERNATIONAL RELATIONS

Russia ratifies Convention on the Avoidance of Double Taxation with Respect to Taxes on Income and Capital Gains between Russia and Argentina, which was signed on 10 October 2001 in Buenos-Aires.

Russia ratifies Agreement on the Avoidance of Double Taxation and Prevention of Tax Evasion with Respect to Income and Capital Gains Tax between Russia and Latvia signed on 20 December 2010 in Moscow.

Russia ratifies Protocol on Introducing Amendments to the Agreement on the Avoidance of Double Taxation with Respect to Income and Capital Gains Taxes between Russian and Switzerland, which was signed on 24 September 2011 in Washington.

State Duma Adopts Bill Requiring Knowledge of Russian Language by Foreign Citizens and Stateless Persons in Russia Working Without Requiring a Visa in Order to Receive or Extend Work Permits.

Bill No. 623645-5

8. COURT PRACTICE

Illegal Cancellation of Shares is Ruled NOT an Offense Connected with Dispossession

Based on their specific nature, it is not possible to physically possess book-entry shares since it is only possible to possess tangible objects. Therefore, the illegal cancellation of the name and certificate of a shareholder from a shareholder register and substitution with another shareholder cannot be deemed an offense similar to those connected with dispossession. This, in turn, means that it is not possible in such cases to apply articles 208 (claims to which periods of limitation do not apply) and 304 (defending owners’ rights from offenses not connected with dispossession) of the Civil Code.

Presidium of the Supreme Commercial (Arbitrazh) Court of the Russian Federation Decree No. 1944/12 dated 17.7.2012

Termination of Agreement under Which Pledgor Acquires Pledged Assets does not Terminate Pledge

Even if, after execution of a commutative pledge agreement, a pledgee’s right to possess the pledged assets is disputed and the agreement under which they were acquired is terminated at the parties’ consent, there are still not sufficient grounds to invalidate the pledge agreement. Banks, as pledgors, retain the pledge over the pledged assets.

Presidium of the Supreme Commercial (Arbitrazh) Court of the Russian Federation Decree No. 16513/11dated 07.06.2012