Welcome to the high-level summary of Covid-19 related actions by the Russian Government. The details and links below have been split between “Tax Filings Affected”, “Government Employee Wages Benefits Programs” and “Government Loan Programs”; and are extracts from the more detailed information available on the websites of the Russian Praxity Participant firm’s websites, links to which are available at the bottom of this page. Praxity Participant Firm in Russia is Mazars
Tax Filing Affected
- The federal government will suspend field tax audits.
- The Federal Tax Service is charged with ensuring - Provision of tax holidays for the payment of taxes and social contributions due before May 1, 2020, in respect of taxpayers engaged in activities in the field of sports, art, culture and cinematography, in accordance with the order of the RF Government dated March 18, 2020. - Providing taxpayers operating in tourism and air transport industries with "tax holidays" (deferred tax payments) by submitting, in established cases, requests for tax payment and social contributions no earlier than May 1, 2020, and refusing to charge late payment interest; - The possibility of introducing a moratorium on filing bankruptcy applications and establishing a procedure for restructuring debts of legal entities until May 1, 2020.
Government Employee Wages Benefits Programs
- The President of the Russian Federation ordered that March 30th to April 3rd, 2020 were non-working days. The Ministry of Labor reaffirms that the presence of non-working days in the calendar are not grounds for reducing workers’ salaries.
- If an employee is on leave, the non-working days from March 30th to April 3rd, 2020 are not included in the days of leave and leave is not extend for these days.
- The non-working days are not considered to be weekends or non-working holidays, so payment is made in a usual rather than an increased amount.
- On June 8, 2020, a law establishing new measures to support tenants in connection with the negative consequences of the coronavirus pandemic, was published. The law amends the previously published Federal Law N 98-FZ, which regulates relations between tenants and lessors during the epidemic. In addition to the right to demand a rent reduction due to the inability to use the leased property for its intended purpose further to the introduction of the high alert or emergency regime in the relevant region, provided to all companies without restricting specific industries, a new basis for reducing rent for a particular category of business entities was introduce by the Feder Law No. 98-FZ. The right to withdraw from a lease agreement was given to tenants – small and medium- sized businesses, carrying out activities in the sectors of the economy most affected by the coronavirus pandemic.
Government Loan and Support Programs
- Medium and small businesses will receive a three-month deferral period beginning in March for insurance premiums and rental payments for state or municipal property.
- Qualifying small businesses and medium sized enterprises (companies with under 250 employees) will be able receive the following support: - The six months deferred payment of all taxes (excluding VAT) for SMEs and micro-enterprises, deferred social contributions for micro-enterprises (under 15 people). - Six month deferral on loans to SMEs - Bank of Russia will provide loans to credit organizations at the rate of 4% per annum for a period of 1 year. At the same time, loans will be provided to credit organizations with a high credit rating without collateral, and to credit organizations that do not have such a rating with a guarantee from JSC "SME Corporation".
- The right to deferment is granted under lease agreements of real estate owned by state, municipal or private property (with the exception of residential premises), which were concluded before the decision on introducing a high alert regime or emergency situation regime on the territory of a constituent entity of the Russian Federation, which took place during 2020.
- As of 4/27/2020 the list of sectors of the Russian economy most affected by the spread of the novel coronavirus infection (established by the Decree of the Government of the Russian Federation № 434 dated April 3, 2020), has been expanded.
Links to Our Member Firms
Further Covid-19 advice
The information contained herein on Covid-19 government measures within the G8, consists solely of information that can be found on the websites of one or more Praxity Participant firms, and has not been written, modified or verified by Praxity, it’s staff, officers or directors.