17 December 2014 Daily Tax & Legal Listings EY’s Russian Tax & Law practice was named a leading Tax firm in Russia in “World Tax 2015,” an annual guide published by the International Tax Review. Legislation and Regulation 1. State Procurement Decree No. 1352 of the Government of the Russian Federation of 11 December 2014 Concerning Special Considerations Relating to the Participation of Small and Medium-Sized Business Entities in Procurements of Goods, Work and Services by Individual Types of Legal Entities Approves the Statute Concerning Special Considerations Relating to the Participation of Small and Medium-Sized Business Entities in Procurements of Goods, Work and Services by Individual Types of Legal Entities, the Annual Volume of Such Procurements and the Procedure for Calculating That Volume. The Decree applies from 1 July 2015 in relation to individual types of legal entities whose annual receipts amount to more than 10 billion roubles, and from 1 January 2016 in relation to other individual types of legal entities. http://static.consultant.ru/obj/file/doc/pr_121214.pdf 2. Bank Guarantee\ State Procurement Decree No. 1339 of the Government of the Russian Federation of 9 December 2014 Concerning the Introduction of Amendments to Decree No. 1005 of the Government of the Russian Federation of 8 November 2013 Establishes additional requirements relating to a bank guarantee used for State procurements. Also establishes requirements and provisions which cannot be included in a bank guarantee. http://www.consultant.ru/document/cons_doc_LAW_172168/ Daily Tax & Legal Listings 17 December 2014 2 3. Mineral Extraction Tax Letter No. GD-4-3/25301@ of the Federal Tax Service of 8 December 2014 Concerning the Communication of a Letter of the Ministry of Finance of the Russian Federation Concerning Regional Gas Supply Systems The Federal Tax Service sets out characteristics of a regional gas supply system for the purposes of applying a decrease coefficient (Cas) to the mineral extraction tax rate. The coefficient Cas should be taken to be equal to 0.1 where a subsurface site containing a hydrocarbon reservoir is a resource base only for a regional gas supply system. http://www.consultant.ru/document/cons_doc_LAW_143296/ 4. Subsurface Use Information of the Ministry of Economic Development of the Russian Federation Notice of Average Prices for a Tax Period Which Has Ended for Particular Types of Hydrocarbons Extracted at a New Offshore Hydrocarbon Deposit for the Period from 1 to 30 November 2014 The Ministry of Economic Development presents information on average prices for certain types of hydrocarbons extracted at a new offshore hydrocarbon deposit for the period from 1 to 30 November 2014. http://www.consultant.ru/document/cons_doc_LAW_143421/ Taxation and Accounting 5. Double Taxation Treaties \ Cyprus Letter No. ОА-4-17/24522@ of the Federal Tax Service of 27 November 2014 Untitled Dividends received by a Cypriot company from participation in the capital of a Russian organization may be taxed in Russia at a rate not exceeding 5% if the tax resident of Cyprus directly invested in the capital of the Russian company paying the dividends an amount equivalent to not less than 100,000 US dollars. http://base.consultant.ru/cons/cgi/online.cgi?req=doc;base=QUEST;n=61534 6. Personal Income Tax Letter No. 03-04-06/53727 of the Ministry of Finance of the Russian Federation of 23 October 2014 Untitled Coupon income on State treasury bonds, debentures and other State securities of the former USSR should not be taken into account in calculating the financial result. http://base.consultant.ru/cons/cgi/online.cgi?req=doc;base=QUEST;n=140871 7. VAT Letter No. 03-07-11/56886 of the Ministry of Finance of the Russian Federation of 11 November 2014 Untitled A grid organization has the right to claim a deduction for VAT charged by an electricity supplier where electricity is acquired for the purpose of compensating for excess losses in grids. http://base.consultant.ru/cons/cgi/online.cgi?req=doc;base=QUEST;n=140855 Inquiries may be directed to one of the following executives: Moscow Director of Tax Peter Reinhardt +7 (495) 705 9738 Tax Policy & Controversy Alexandra Lobova Alexei Nesterenko Energy Chemical & Utilities Richard Lewis Victor Borodin Alexander Smirnov +7 (495) 705 9704 +7 (495) 755 9760 +7 (495) 755 9848 Technology, Media & Telecommunications Vladimir Abramov +7 (495) 755 9680 Ivan Rodionov +7 (495) 755 9719 Vadim Ilyin +7 (495) 648 9670 Financial Services Alexei Kuznetsov Irina Bykhovskaya Ivan Sychev Maria Frolova +7 (495) 755 9687 +7 (495) 755 9886 +7 (495) 755 9795 +7 (495) 641 2997 Tax Perfomance Advisory Services Ivan Rodionov +7 (495) 755 9719 Sergey Saraev +7 (495) 664 7862 Human Capital Zhanna Dobritskaya Anton Ionov Ekaterina Ukhova Sergei Makeev +7 (495) 755 9675 +7 (495) 755 9747 +7 (495) 641 2932 +7 (495) 755 9707 Industrial Products Andrey Ignatov +7 (495) 755 9764 Indirect Tax Victor Borodin Vitaly Yanovskiy +7 (495) 755 9760 +7 (495) 664 7860 International Tax Services Vladimir Zheltonogov Alexei Ryabov Marina Belyakova Andrey Vostokov Evgeny Nepomnyashchikh +7 (495) 705 9737 +7 (495) 641 2913 +7 (495) 755 9948 +7 (495) 755 9708 +7 (495) 648 9626 Real Estate, Hospitality & Construction Yulia Timonina +7 (495) 755 9838 Svetlana Zobnina +7 (495) 641 2930 Anna Strelnichenko +7 (495) 705 9744 Retail and Consumer Products Alexandra Lobova +7 (495) 705 9730 Dmitry Khalilov +7 (495) 755 9757 Yuko Fite +7 (495) 755 9759 Tax Accounting and Risk Advisory Services Alexei Malenkin +7 (495) 755 9898 Tax Compliance Yulia Timonina Larissa Gorbunova +7 (495) 755 9838 +7 (495) 755 9901 +7 (495) 705 9730 +7 (495) 662 9319 Transfer Pricing and Tax-Efficient Supply Chain Management Evgenia Veter +7 (495) 660 4880 Steve Cawdron +7 (495) 287 6536 Maxim Maximov +7 (495) 662 9317 Transaction Tax Yuri Nechuyatov Richard Lewis +7 (495) 664 7884 +7 (495) 705 9704 Customs Yuriy Volkov +7 (495) 641 2927 Legal Services Dmitry Tetiouchev +7 (495) 755 9691 Alexey Markov +7 (495) 641 2965 Georgy Kovalenko Tobias Luepke Michael Makhotin Oleg Shumilov +7 (495) 287 6511 +7 (495) 641 2935 +7 (495) 648 9627 +7 (495) 662 9338 Ekaterinburg Tax and Legal Services Alexey Korabelnikov +7 (343) 378 4900 Krasnodar Tax and Legal Services Elena Tikhomirova +7 ( 812) 703 7800 St. Petersburg Tax and Legal Services Dmitri Babiner Anna Kostyra +7 (812) 703 7839 +7 (812) 703 7873 This publication contains information in summary form and is therefore intended for general guidance only. 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