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Doing business in Russia 2020
  1. Introduction
    1. Political and administrative structure
    2. Legal environment
  2. Common forms of business structures for foreign investors
    1. Main types of structure
    2. Registration, liquidation and reorganisation of business structures
    3. Shareholders’ and participants’ agreements
    4. Strategic industries
  3. Anti-monopoly issues
    1. General legal and regulatory framework
    2. Scope of application of the Competition Law
    3. Anti-competitive practices and restriction of competition
    4. Liability
  4. Tax system
    1. General approach
    2. Corporate taxation
    3. Incentives
    4. Special tax regimes
    5. Taxation of individuals
    6. Double taxation treaties
  5. Customs regulations
    1. General approach
    2. Trade between EEU and non-EEU countries
    3. Mutual trade between the EEU members
  6. Currency control
    1. Foreign currency transactions
    2. Consequences of breach/Penalties
  7. Lending in Russia
    1. Lending documents and governing law
    2. Jurisdiction
    3. International finance transactions and repatriation requirements
    4. Security interests
    5. Recognition of security trusts
    6. Syndicated loans
    7. Enforcement
    8. Suretyships and guarantees
    9. Bankruptcy considerations
    10. Other lending related issues
  8. Employment and migration
    1. Formalising the employment relationship
    2. Managing employment relationships
    3. Terminating an employment agreement
    4. Specifics of employing foreign nationals
  9. Personal data protection
    1. General approach
    2. Scope of the Data Protection Law
    3. Liability
    4. Right to be forgotten
  10. Intellectual property
    1. General approach
    2. Contractual aspects of intellectual property rights
    3. Rights over the results of intellectual activity
    4. Company names, trade names, trademarks and appellations of origin
    5. Intellectual property rights infringements
    6. IP Court
  11. Advertising issues
    1. General approach
    2. Scope of application of the Advertising Law
    3. Violations of the Advertising Law
    4. Liability
  12. Anti-corruption and compliance
    1. General approach
    2. Legal framework
    3. Compliance requirements for companies
    4. Concept of corruption in Russian law
    5. Possible targets of bribery
    6. Liability and penalties for corruption
    7. Example of sector-specific anti-corruption measures
  13. Real estate and construction
    1. Rights to real estate
    2. Real estate transactions
    3. Resolution of real estate disputes
    4. Planning and construction issues
  14. Corporate bankruptcy
    1. Insolvency criteria
    2. Stages of bankruptcy proceedings
  15. Import substitution and production localisation in Russia
    1. Measures affecting goods importation and current import substitution legislation
    2. Localisation incentives
    3. Sector-specific impact of import restrictions and localisation requirements
  16. Banking sector
    1. Legislative and regulatory framework
    2. Licensing and operations
    3. Deposit insurance
    4. The anti-money laundering law
    5. Bank secrecy
    6. FATCA and CRS
  17. Environment, energy efficiency and renewables
    1. Environment
    2. Energy efficiency
    3. Renewables
  18. Infrastructure and public private partnerships
    1. General approach
    2. Key PPP legislation
    3. Russian PPP environment
    4. Financing
    5. Legal issues
    6. Prospects for infrastructure projects
  19. Oil & gas
    1. Legislative framework
    2. Ownership and licensing
    3. Restrictions on foreign investors
    4. Licences
    5. PSAs

Customs regulations

General approach
Trade between EEU and non-EEU countries
Mutual trade between the EEU members

Key contacts

Contact
Hayk Safaryan
Hayk Safaryan
Partner
T +7 495 786 30 59

Expertise

Tax

Mutual trade between the EEU members

Free circulation of goods

Declaring procedures and customs duties

As the territories of the member states of the EEU form a common customs territory, there are no customs offices or customs declaration procedures between them.

Customs duties are not applicable to reciprocal trade between the member states.

Non-tariff restrictions

No restrictions of an economic nature are applicable to mutual trade between the member states, except for special protective, anti-dumping and compensatory measures.

Indirect taxation within the EEU

Exporting goods

Goods exported within the EEU (from a member state to another member state) are subject to a 0% VAT rate and are exempt from excise duties provided that the export of the goods is properly documented.

Importing goods

Goods imported from the territory of one EEU member state to the territory of another EEU member state are subject to indirect taxes (VAT and excise duties) in the importing state.

The indirect taxes paid on imported goods are subject to deductions in accordance with the legislation of the importing state.

Indirect tax rates, which are applicable to goods imported from the territory of one member state in the territory of another member state, must not exceed those applied to similar domestic goods.

Works and services

Works and services are subject to VAT in that EEU member state which is regarded as the place of provision of the services or performance of the works. For example:

  • works/services related to immovable or movable property are subject to VAT in the state where this property is located;
  • services in the spheres of culture, art, education, physical training, tourism, recreation and sports are subject to VAT in the country where the respective recreational, tourist, sport, etc. facilities are located; and
  • consulting, legal, accounting, auditor, designer, marketing, research and development and some other types of services are subject to VAT in the state where the purchaser of these services is located.

In other cases not mentioned above, works and services are subject to VAT in the state where the provider of the services is located.

The tax base, rates, collection procedures and tax concessions vary from one member state to another.

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“The operation of the Customs Code of the EEU will result in the creation of a common market allowing the free circulation of goods, services, capital and labour between its member states.

This Code allows companies that carry out import/export activities to minimise their risks. It also simplifies administrative procedures and makes company operations more transparent for customs control purposes.”

Key contacts

Hayk Safaryan
Hayk Safaryan
Partner
T +7 495 786 30 59

Expertise

Tax