Legal update for diplomatic missions in Russia

Clarification of activities that residents of special economic zones (SEZ) are entitled to perform

Residents of SEZs are now entitled to carry out other types of activities in SEZs in addition to industrial-production, technical-innovation or tourist-recreational. However, the possibility of performing other activities must be specifically stipulated in the agreement with the SEZ resident, and income from other activities must not exceed 10% of the total income of such SEZ resident.

Residents of industrial-production SEZs are entitled to engage in industrial-production activities and logistics simultaneously.

Federal Law No. 532-FZ dated 30 December 2020 "On Amendments to Articles 9 and 10 of the Federal Law "On Special Economic Zones in the Russian Federation"

Ratification of protocols on amending tax treaties of Russia with Cyprus and Luxembourg

Protocols on amendments to the double taxation treaties between Russia and Luxembourg, and between Russia and Cyprus have been ratified.From 1 January 2021 the income tax rate on dividends and interest increases to 15% (with some exceptions).

Federal Law No. 486-FZ dated 30 December 2020 "On the Ratification of the Protocol Amending the Treaty between the Russian Federation and the Grand Duchy of Luxembourg on the Avoidance of Double Taxation and the Prevention of Tax Evasion in relation to Income and Property Taxes dated 28 June 1993"

Federal Law No. 487-FZ dated 30 December 2020 "On the Ratification of the Protocol Amending the Treaty between the Government of the Russian Federation and the Government of the Republic of Cyprus on the Avoidance of Double Taxation in relation to Income and Property Taxes dated 5 December 1998"

Extension of the pilot project on VAT refunds to foreigners when exporting goods purchased in Russia outside the customs territory of the Eurasian Economic Union (tax-free) until the end of 2021

All foreigners, except for tourists from EAEU countries, can be refunded VAT on purchases made in Russia. The tax refund system applies to goods purchased within one day in certain retail organisations in the amount of at least RUB10,000.

Resolution of the Government of the Russian Federation No. 22 dated 20 January 2021 "On Amendments to Paragraph 4 of Resolution of the Government of the Russian Federation No. 105 dated 6 February 2018"

Definition of professions for foreign workers for 2021

The Ministry of Labour has established a list of professions (specialties, positions) for foreign workers, allocated in accordance with the corresponding quotas for 2021. The lists of professions are established for each region.

Order of the Ministry of Labor and Social Protection of the Russian Federation No. 937 dated 22 December 2020 "On Approval of the List of Professions (Specialties, Positions) for Foreign Workers Arriving in the Russian Federation under a Visa for 2021"

New list of measures to be taken by the inviting party in relation to foreign citizens invited to Russia

The Russian government has determined what measures should be taken by the inviting party to ensure that the invited foreign citizen or stateless person complies with the manner of stay (residence) in Russia.

In particular, the inviting party must provide the foreign citizen with its contact details to maintain communication, implement the guarantees of material, medical and housing security stipulated in the invitation, as well as assist in implementing the stated purpose of entry into Russia (for example, organising conferences, trips, employment, training, etc). The inviting party is obliged to notify the territorial body of the Ministry of Internal Affairs of the Russian Federation of a loss of contact with an invited foreign citizen.

Decree of the Government of the Russian Federation No. 1428 dated 15 September 2020 "On Measures Taken by the Inviting Party to Ensure that the Invited Foreign Citizen or Stateless Person Complies with the Manner of Stay (Residence) in the Russian Federation"

New mechanism for accounting for individuals performing the functions of a foreign agent

An individual who carries out political activities and/or purposefully collects information in the field of military and military-technical activities of the Russian Federation in the Russian Federation in the interests of foreign states or foreign state bodies, international or foreign organisations, foreign citizens or stateless persons (if there are no signs of crimes provided for by the Criminal Code of the Russian Federation) must submit an application to be included in the list of individuals performing the functions of a foreign agent. The list of individuals performing the functions of a foreign agent is maintained by the Ministry of Justice of the Russian Federation. Such persons must submit to the authorised body a report on their activities and on the expenditure of funds received from foreign sources once every six months, and label the materials distributed in a certain way.

Employees of diplomatic missions, employees of consular institutions, representatives of foreign state bodies and international organisations who are in the Russian Federation by official invitation; foreign journalists accredited in the Russian Federation and some other persons are exempt from the obligation to register as an individual performing the functions of a foreign agent.

Federal Law No. 481-FZ dated 30 December 2020 "On Amendments to Certain Legislative Acts of the Russian Federation in terms of Establishing Additional Measures to Counter Threats to National Security"