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Review of amendments to tax, currency, and labor laws – August 2020

Use of cash register equipment

Government decrees have suspended the checks on compliance with the requirements of Russian laws on the use of cash register equipment until December 31, 2020:

  • Government Decree No. 409 dated April 02, 2020 on measures to ensure sustainable economic development;
  • Government Decree No. 438 dated April 03, 2020 on the particularities of the implementation in 2020 of state control (inspection), municipal control and amending Item 7 of the Rules for Preparation by State Control (inspection) and Municipal Control of Annual Plans for Scheduled Inspections of Legal Entities and Individual Entrepreneurs.

The procedure for correcting errors in the use of cash register equipment was simplified in July 2020 (Article 14.5 Russian Code of Administrative Offenses). To make such corrections, it is now enough to issue a corrective cash register equipment check. Previously, it was also necessary to notify errors to tax authorities.

The Russian Ministry of Finance recently clarified that suppliers do not need to issue a check if the agent has already done so (Russian Ministry of Finance Letter N 03-01-15/44636 dated May 27, 2020).

VAT on software programs and databases

The transfer of exclusive rights and rights to use software programs and databases will be subject to VAT from January 01, 2021 onwards. VAT exemption will remain only for Russian software programs and databases included in the Russian Register of Software Programs and Databases.

Exemptions will not apply if the transferred rights enable (i) distributing advertising information on the internet and/or gaining access to such information, (ii) posting on the internet offers for the purchase/sale of goods (work, services), property rights, (iii) searching for information about potential buyers/sellers and/or to conclude transactions.

The exercise of exclusive rights and rights to use inventions, utility models, industrial designs, integrated circuit topographies, trade secrets (know-how) under a license agreement will not be subject to VAT as per the current procedure.

Profit tax

The procedure for making advance payments for profit tax in 2020 has changed. It is now possible to switch from making quarterly advance payments to monthly advance payments, and vice versa.

This year, organizations are entitled to make only quarterly advance payments if their sales revenues for the previous four quarters have not exceeded 25 million rubles on average. Previously, the threshold was 15 million rubles.

Organizations may also switch to making monthly advance payments based on actual profit throughout the year. To do so, they must make changes to their accounting policy and notify tax authorities by the 20th of the last month of the reporting period. Tax authorities have also prepared a form that they recommend using to file such notification.

Currency law

From July 31, 2020 onwards, fines for currency violations will be decreased:

  • Fines for failure to submit to banks reports, documents, and information on currency transactions have been canceled if the delay is not greater than 90 days at most;
  • Fines for failure to fulfill the repatriation obligation have been significantly reduced (except for cases where the amount of currency transactions exceeds 100 million rubles).

Labor law

From July 31, 2020 onwards, a paid day for medical checkup will be awarded every year to employees over the age of 40 (Federal Law No. 261-FZ dated July 31, 2020).

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