Monitoring legislative innovations
Monitoring changes in legislation for the period from 04/28/2023 to 05/31/2023
1. New in legislation (changes that have entered into force)
- It will be possible to build hotels and museums in national parks
Modified text of the draft Decree of the Government of the Russian Federation "On approval of the List of capital construction projects, construction, reconstruction, major repairs, commissioning and decommissioning, the demolition of which is allowed when carrying out recreational activities in national parks, as well as non-capital buildings, structures (including including non-stationary retail facilities), landscaping elements, related infrastructure facilities, the construction, operation and dismantling of which is permitted when carrying out recreational activities in national parks" (prepared by the Russian Ministry of Natural Resources on 04/09/2023)
A list of objects has been prepared, the construction and construction of which is permitted during recreational activities in national parks. It includes, among other things, hotels, sanatoriums, museums, cable cars, stables, non-stationary retail facilities, public toilets, equipped parking lots
- Special investment contracts in the automotive industry can be extended until the end of 2033
Federal Law of April 28, 2023 No. 142-FZ “On amendments to Article 2 of the Federal Law “On Amendments to the Federal Law “On Industrial Policy in the Russian Federation” regarding the regulation of special investment contracts”
The law allows for the extension of special investment contracts in the automotive industry until December 31, 2033.
- The state continues to provide guarantee support for loans to solve problems to ensure sustainable economic development
Decree of the Government of the Russian Federation of April 22, 2023 No. 635 “On amendments to Decree of the Government of the Russian Federation of May 10, 2017 No. 549”
Guaranteed state support for loans and bond issues attracted by Russian organizations to conduct their production activities or capital investments has been extended to 2023. The selection of principals this year is carried out on October 15.
The specifics of providing guaranteed state support to aluminum industry organizations have been added.
It has been established that in 2023 the guarantee is provided to ensure the fulfillment of the principal’s obligations to repay the loan amount (repayment of the principal debt), the due date of which, in accordance with the terms of the loan agreement, occurs after January 1, 2026
- The action plan for transforming the business climate has been expanded
Order of the Government of the Russian Federation dated April 26, 2023 No. 1089-r On introducing amendments to the order of the Government of the Russian Federation dated October 15, 2020 No. 2662-r
The action plan for the implementation of the mechanism for managing systemic changes in the legal regulation of business activities “Transformation of the business climate” “Export of goods and services” has been expanded.
Residents will be able to use foreign electronic means of payment when non-residents pay for goods, work, services and results of intellectual activity, including exclusive rights to them.
It is planned to clarify the mechanism for applying the zero VAT rate when selling goods shipped from warehouses in foreign countries to foreign companies.
The tax office will not need to submit copies of transportation documents with Russian customs marks to confirm the validity of applying a zero VAT rate when providing freight forwarding services and services for the provision of railway rolling stock and containers.
SMEs will receive financing for leasing foreign equipment.
Medical and health tourism will be regulated at the legislative level.
A number of activities have been adjusted.
- The Ministry of Energy has determined the procedure for confirming the intended purpose of imported goods for priority investment projects
Order of the Ministry of Energy of the Russian Federation dated March 13, 2023 No. 154 “On approval of the Procedure and form of confirmation of intended purpose in relation to technological equipment, components and spare parts for it, raw materials and supplies imported for exclusive use on the territory of the Russian Federation as part of the implementation of investment projects , corresponding to the priority type of activity (sector of the economy) of the Russian Federation, falling within the scope of the Ministry of Energy of the Russian Federation"
Registered with the Ministry of Justice of the Russian Federation on April 24, 2023. Registration No. 73135.
Technological equipment, components and spare parts for it, as well as raw materials and materials for the implementation of investment projects in priority sectors of the economy can be imported into Russia without paying customs duties. It is necessary to confirm the intended purpose of the imported goods.
The procedure for confirming the intended purpose of imported goods through the Ministry of Energy and the form of the corresponding document have been determined.
- The Ministry of Education and Science will determine the procedure for confirming the intended purpose of imported goods for scientific investment projects
Draft Order of the Ministry of Science and Higher Education of the Russian Federation "On approval of the Procedure for confirming the intended purpose in relation to technological equipment, components and spare parts for it, raw materials and materials imported for exclusive use on the territory of the Russian Federation as part of the implementation of investment projects in the field of scientific research and development , as well as forms of confirmation of the intended purpose in relation to technological equipment, components and spare parts for it, raw materials and supplies imported for exclusive use on the territory of the Russian Federation as part of the implementation of investment projects in the field of scientific..." (prepared by the Ministry of Education and Science of Russia on April 20, 2023 )
Technological equipment, components and spare parts for it, as well as raw materials and materials for the implementation of investment projects in priority sectors of the economy can be imported into Russia without paying customs duties. It is necessary to confirm the intended purpose of the imported goods.
It is planned to establish a procedure for confirming the intended purpose of imported goods for the implementation of investment projects in the field of scientific research and development, as well as the form of the corresponding document.
- Budget investments for legal entities: it is planned to adjust the standard form of the agreement
Draft Order of the Ministry of Finance of the Russian Federation "On amendments to the order of the Ministry of Finance of Russia dated November 7, 2018 No. 224n "On approval of the Standard form of an agreement on the provision of budget investments from the federal budget to a legal entity that is not a federal state institution and a federal state unitary enterprise" (prepared by the Ministry of Finance of Russia 05/10/2023)
The proposed amendments will make it possible, when providing investments from the federal budget to a business company, to realize the participation of the Russian Federation in the authorized capital of this organization by acquiring shares purchased by the company.
- The rules for concluding special investment contracts have been adjusted
Decree of the Government of the Russian Federation of May 13, 2023 No. 749 “On introducing amendments to Decree of the Government of the Russian Federation of July 16, 2015 No. 708 and invalidating paragraph fifty-six subparagraph “a” of paragraph 2 of the changes that are made to acts of the Government of the Russian Federation on issues related to the special investment contract approved by Decree of the Government of the Russian Federation of December 16, 2017 No. 1564” (the document has not entered into force)
The SPIC is concluded, among other things, in relation to an investment project that began to be implemented no earlier than 12 months before the date of filing the application for the conclusion of the contract.
The investor must have no rights of claim aimed at alienating or encumbering more than 25% of the book value of the property used to implement the investment project.
Information on the cost of materials, fixed assets, other investment objects and finished products is provided excluding VAT.
The draft decision on the possibility of changing the terms of the SPIC is accompanied by copies of the contract and minutes of the commission meeting, as well as background information on the results of monitoring the investor’s fulfillment of contractual obligations.
The procedure for the formation and activities of the interdepartmental commission on special investment contracts has been clarified.
The conclusion of a SPIC does not prevent the application to the investor of measures to stimulate activities in the industrial sector that are not specified in the contract.
2. Legislative initiatives
- International holding companies will have expanded investment opportunities in order to obtain tax benefits
Dossier on the draft federal law No. 330129-8 “On amendments to parts one and two of the Tax Code of the Russian Federation” (in terms of improving the taxation of residents of special administrative regions) (introduced on 04/05/2023 by senators of the Russian Federation: N.A. Zhuravlev, A.D. Artamonov, A.N. Epishin, A.V. Shenderyuk-Zhidkov)
On May 18, 2023, the State Duma in the first reading adopted draft amendments to the Tax Code of the Russian Federation, which propose to improve the taxation of international holding companies (IHCs) registered in special administrative regions. For these purposes, the following is provided, including:
- expanding MHC's ability to choose the form of investment for the purposes of applying reduced income tax rates;
- consolidation of the procedure for preliminary approval of the form of investment chosen by MHC with the highest executive body of state power of the constituent entity of the Russian Federation;
- introduction of a flexible approach to assessing compliance by international companies that are MHCs with requirements for staffing and office premises during the first tax period for income tax;
- establishing for international companies registered in 2023 a twelve-month period for submitting documents to obtain MHC status;
- exemption of the controlling person of a foreign organization, by way of redomiciliation of which an international company is registered, from liability for failure to provide notification of controlled foreign companies in the event that such an organization, in accordance with its personal law, is recognized as having actually ceased its activities.