MONITORING CHANGES IN LEGISLATION FOR THE PERIOD FROM 12/11/2023 TO 01/11/2024

1. New in legislation (changes that have entered into force)

• A new loan program is launching for the implementation of technological sovereignty projects

Decree of the Government of the Russian Federation of December 2, 2023 No. 2064 “On amendments to certain acts of the Government of the Russian Federation”

The government is launching a new loan program to implement projects that contribute to achieving technological sovereignty. The concept of technology credit was introduced. The rules for providing guarantees for such loans have been approved. Their size will range from 10% to 50% of the principal amount. Guarantees will be provided by VEB.RF; their total amount cannot exceed 200 billion rubles.

The total cost of the investment project (excluding interest on loans) should be from 1 billion to 20 billion rubles. (inclusive), no more than 80% can be financed through a technology loan, 20% - the borrower’s own funds. The validity period of the technology loan is 3-15 years.

A technology loan cannot be used for refinancing.

• Russia and Oman eliminated double taxation

Federal Law of December 12, 2023 No. 571-FZ "On the ratification of the Agreement between the Government of the Russian Federation and the Government of the Sultanate of Oman on the elimination of double taxation in relation to income taxes and the prevention of tax avoidance and evasion and the Protocol thereto"

The Agreement between the Government of Russia and the Government of the Sultanate of Oman on the elimination of double taxation of income of citizens and organizations, as well as on the prevention of tax avoidance and evasion, was ratified.

• Improved requirements for industrial parks

Decree of the Government of the Russian Federation of December 9, 2023 No. 2100 "On amendments to Decree of the Government of the Russian Federation of August 4, 2015 No. 794"

The user of the infrastructure of the industrial (industrial) park must enter into a purchase and sale or lease agreement with the management company for the industrial infrastructure of the park, their parts or a site included in the park territory.

The plots that make up the territory of the agro-industrial park can be located 20 kilometers from each other.

Parks can be located on lands of industry, energy, transport, communications, radio broadcasting, television and computer science, on lands for space activities, on lands of defense, security and other special purposes, or on lands of populated areas.

The management company of an agro-industrial park can operate in the form of an independent non-profit organization.

The list of documents to confirm compliance with the requirements for parks and management companies has been expanded.

• Domestic industrial products will have a logo and digital passports

Federal Law of December 25, 2023 No. 658-FZ "On Amendments to the Federal Law "On Industrial Policy in the Russian Federation"

The President of the Russian Federation signed a law that introduces the concepts of Russian industrial products and their manufacturer. Digital passports will be issued for products.

The GISP will host a register of Russian industrial products.

A mechanism is being introduced to stimulate demand for industrial products through the use of the “Russian Industrial Products” logo.

• The procedure for excluding an organization from the register of participants in the Islamic banking experiment has been established

Directive of the Bank of Russia dated September 7, 2023 No. 6521-U “On the procedure and timing for the Bank of Russia to exclude information about a legal entity from the register of participants in the experiment to establish special regulation in order to create the necessary conditions for carrying out partnership financing activities if the participant submits a corresponding application experiment"

Registered December 8, 2023 Registration No. 76331.

The decision to exclude an organization from the register of participants in the Islamic banking experiment is made by the Bank of Russia within 20 working days after submitting the application and documents that must confirm the presence or absence of the company’s obligations arising in connection with transactions or operations within the framework of partner financing activities.

Regions will receive funds for the development of technology parks in the field of high technology
Decree of the Government of the Russian Federation of December 14, 2023 No. 2142 “On amendments to certain acts of the Government of the Russian Federation”

Regions receive transfers to reimburse the costs of creating, modernizing and reconstructing the infrastructure of industrial parks and industrial technology parks. Now we are talking about technology parks in the field of high technologies.

An application for concluding an agreement is sent by the region to the Ministry of Industry and Trade through the interdepartmental electronic document management system.

The Ministry reviews documents within 30 working days.

• The President extended the special economic measures

Decree of the President of the Russian Federation of December 18, 2023 No. 958 “On amendments to some decrees of the President of the Russian Federation”

Until the end of 2024, the ban on performing operations without the permission of the Central Bank has been extended:

1. on payment by a resident of a share, contribution, share in the property (authorized or share capital, mutual fund of a cooperative) of a non-resident legal entity;
2. on a contribution by a resident to a non-resident as part of the implementation of a simple partnership agreement with investment in the form of capital investments (joint activity agreement).

In addition, Russian legal entities that have obligations under Eurobonds must fulfill them to the holders of these securities, whose rights are taken into account by Russian depositories, by placing bonds before July 1, 2024, paid upon their placement with Eurobonds or cash with the intended use of the funds raised to purchase Eurobonds. Previously, the deadline was set until January 1, 2024.

Special economic measures in the financial and fuel and energy sectors have been extended for another 2 years - until December 31, 2025. In particular, we are talking about restrictions on the exit of large foreign investors from mining and energy projects.

Also, until the end of 2024 (and not 2023), large companies in the fields of energy, engineering and trade can make corporate decisions without taking into account the votes of co-owners from unfriendly countries.

International holding companies have expanded their investment opportunities in order to obtain tax benefits
Federal Law of December 19, 2023 No. 595-FZ "On amendments to parts one and two of the Tax Code of the Russian Federation and Article 9 of the Federal Law "On amendments to parts one and two of the Tax Code of the Russian Federation and certain legislative acts of the Russian Federation"

Amendments have been made to the Tax Code of the Russian Federation that improve the taxation procedure for international holding companies (IHCs) registered in special administrative regions (SARs). For these purposes, including:

• MHC's ability to choose the form of investment for the purposes of applying reduced income tax rates has been expanded;
• a procedure has been established for preliminary approval of the form of investment chosen by MHC with the highest executive body of state power of a constituent entity of the Russian Federation;
• a flexible approach has been introduced to assess the compliance of international companies that are international chemical companies with requirements for staffing and office premises during the first tax period for income tax;
• for international companies registered in 2023, a 12-month deadline has been established for submitting documents to obtain MHC status;
• the controlling person of a foreign organization, by way of redomiciliation of which an international company is registered, is exempt from liability for failure to provide notice of a CFC in the event that such an organization, in accordance with its personal law, is recognized as having actually ceased its activities;
• the application period for the previously granted opportunity to use office premises outside the SAR - in Kaliningrad and Vladivostok - has been extended until 2028;

Federal cities have the right to prevent re-registration of a company in the SAR if income tax revenues to the regional budget from the company amount to more than 0.1% of all revenues for at least one year out of the last three years.
The law comes into force on the day of its official publication, with the exception of provisions for which a different period of entry into force is provided.

The procedure for holding the Games of the Future is determined at the legislative level
Federal Law of December 25, 2023 No. 645-FZ “On the International Multisport Tournament “Games of the Future”

The President signed the Law on the International Multisport Tournament "Games of the Future".

The relations arising in connection with the organization and conduct of the “Games of the Future” tournament, combining elements of physical competitions, the use of computer equipment and the results of intellectual activity, including computer programs and audiovisual works, which are an integral part of the sports competition, have been regulated.

The powers of the tournament organizer, the host party, federal, regional and local authorities are secured.

• A procedure has been established for informing clients regarding partnership financing

Directive of the Bank of Russia dated September 5, 2023 No. 6517-U “On the procedure for informing clients of an experiment participant about the partner financing activities carried out by him, about the list of information to be disclosed at customer service points and on the official website of the experiment participant in the information and telecommunications network" Internet”, as well as the procedure and timing for disclosure of such information” Registered on December 14, 2023. Registration No. 76403.

From September 1, 2023 to September 1, 2025, an experiment on the development of partnership financing (Islamic banking) is taking place in Bashkiria, Tatarstan, Dagestan and Chechnya. A consumer wishing to enter into an agreement or make a transaction under the rules of affiliate financing must be provided with information about the features of such transactions. The Bank of Russia has established a list of required information, as well as the procedure and timing for its disclosure.

In particular, information must be provided that the funds that the client transfers to the organization under a partnership financing agreement are not insured by the state; The Central Bank of the Russian Federation exercises control and supervision over the participants of the experiment. Methods and addresses for sending complaints are also provided. Such information is posted at customer service points and on the company website.

• The rules for integrated development of territories have been improved

Federal Law of December 25, 2023 No. 627-FZ "On Amendments to the Town Planning Code of the Russian Federation and Certain Legislative Acts of the Russian Federation"

Operators of integrated development of territories can make decisions on the preparation of documentation on its planning, contact the rights holders of networks to conclude an agreement on connecting capital construction facilities, and also make decisions on holding tenders for the right to conclude an agreement on the integrated development of the territory.

It is possible to engage in comprehensive development of the territory in accordance with previously approved documentation on its planning.

Documentation on territory planning can be prepared simultaneously with the preparation of changes to programs for the comprehensive development of municipal, transport and social infrastructure.

The reconstruction and removal of engineering and technical support networks has been simplified as part of the integrated development of territories.

State information systems for supporting urban development activities contain decisions and agreements on the integrated development of the territory, as well as other information, documents and materials.

An apartment building can be excluded from the decision on the integrated development of a residential area before a decision is made to hold a tender for the right to conclude an agreement.

• A new investment income tax deduction will be introduced in January.

Federal Law of December 25, 2023 No. 629-FZ "On Amendments to Article 286.1 of Part Two of the Tax Code of the Russian Federation"

From January 1, 2024, a new investment income tax deduction will be provided.

It can be applied by decision of the region in the amount of up to 25% of capital investment costs under agreements on the implementation of investment projects with state support in the form of a deduction. In particular, these are projects of technological sovereignty and structural adaptation of the economy.

• Capital investments from the federal budget will be planned on a register basis

Federal Law of December 25, 2023 No. 628-FZ "On Amendments to the Budget Code of the Russian Federation and Certain Legislative Acts of the Russian Federation"

A law has been signed on the transition from the formation of a federal targeted investment program to the implementation of a comprehensive state program "Construction".

A register of capital construction and real estate objects that are being built, reconstructed or purchased at the expense of the federal budget will appear.

The government can determine in what form and by whom decisions are made on capital investments at the expense of the federal budget in federal property objects worth less than 3 billion rubles.

The main managers of federal budget funds generate information about objects financed from the federal budget.

The law comes into force 10 days after official publication, with the exception of certain provisions.

- Insurance will be required to work in experimental legal regimes

Dossier on draft federal law No. 512628-8 “On amendments to the Federal Law “On experimental legal regimes in the field of digital innovation in the Russian Federation” (introduced on December 15, 2023 by the Government of the Russian Federation)

On December 18, 2023, the Government submitted to the Duma amendments to the Law on Experimental Legal Regimes (EPR) in the field of digital innovation.

Insurance of damage caused to the life, health and property of citizens within the framework of the EPR will become mandatory. Cases of harm caused by the use of solutions created using artificial intelligence technologies will be especially regulated.

For initiators of EPR, the requirement that the manager has no criminal record will be abolished.

- For new residents of the international priority development territory they want to establish a zero income tax rate

Dossier on draft federal law No. 518779-8 “On amendments to Articles 284.4 and 427 of Part Two of the Tax Code of the Russian Federation” (introduced on December 22, 2023 by the Government of the Russian Federation)

On December 26, 2023, the State Duma received for consideration draft amendments to the Tax Code of the Russian Federation, which propose to establish tax benefits for residents of an international priority development territory (ITOR).

In particular, for new organizations - residents of MTOR, it is planned to establish a zero rate of income tax for 10 years, subject to credit to the federal budget. In addition, regions will be able to zero the rate of income tax credited to regional budgets.

Residents of these territories will also be able to apply uniform reduced rates of insurance premiums, provided that the volume of investments in accordance with the agreement on the implementation of activities is at least 500 million rubles. The MTOR resident retains the responsibility of a tax agent. Lost revenues of the State Voluntary Fund will be compensated by interbudgetary transfers provided from the federal budget of the SFR and the Federal Compulsory Compulsory Medical Insurance Fund.

- The state will support complex investment and construction projects of Russian organizations abroad

Dossier on draft federal law No. 518788-8 “On amendments to the Federal Law “On Industrial Policy in the Russian Federation” (introduced on December 22, 2023 by the Government of the Russian Federation)

On December 22, 2023, the government submitted draft amendments to the Law on Industrial Policy to the State Duma.

It is planned to provide the possibility of state support for complex investment and construction projects implemented by Russian organizations on the territory of foreign countries, in order to develop the export potential of Russia and promote Russian industrial products to foreign markets.

The government will be able to establish requirements for the minimum share of Russian products that are used in the implementation of complex construction of industrial facilities on the territories of foreign countries.