Legal update for diplomatic missions in Russia

We are pleased to present our new periodical update covering legal developments in the Russian Federation which could be of interest to diplomatic missions.

From 1 January 2021, a new type of electronic visa will be available in Russia

From 1 January 2021, citizens of a number of countries will be able to apply for a unified electronic visa to visit any region of the Russian Federation.

The maximum period of stay in Russia on a unified electronic visa is 16 days.Visa processing will take no more than four calendar days from the date of the foreign citizen submitting an application via a special website.

Federal Law No. 305-FZ “On amendments to the Federal Law “On the procedure for leaving the Russian Federation and entering the Russian Federation” and the invalidation of certain provisions of legislative acts of the Russian Federation” dated 31 July 2020.

On 1 January 2021 the updated regulation for the activities of foreign authorities and organisations regarding the adoption of children in the Russian Federation will enter into force

The Government of the Russian Federation has approved a new regulation on activities of bodies and organisations of foreign states regarding the adoption of children in the Russian Federation and the monitoring of such activities (New Regulation).

The New Regulation is aimed at clarifying the current procedure which will expire on 1 January 2021, while the procedure for the activities of foreign adoption agencies and organisations in the Russian Federation will not change significantly.

The New Regulation is valid for the period from 1 January 2021 to 1 January 2027.

Decree of the Government of the Russian Federation No. 1396 “On the activities of bodies and organisations of foreign states regarding the adoption of children in the Russian Federation and monitoring its implementation” dated 11 September 2020.

Rules for granting state loans by the Russian Federation to foreign borrowing counties have been approved

The Government of the Russian Federation has approved rules for the Russian Federation to grant state loans to foreign countries (Rules).

The Rules set out:

• the objectives and principles of granting state loans;
• specifics and conditions for granting state export loans;
• specifics and conditions for granting state financial loans;
• specifics and conditions of granting a state loan for official assistance for the development of a foreign states;
• model forms of intergovernmental agreements on the provision of state loans.

Decree of the Government of the Russian Federation No. 1456-50 “On approval of the Rules for granting state loans by the Russian Federation to foreign borrowing countries” dated 16 September 2020 (entered into force on 23 September 2020)

Earlier introduced measures aimed at regulating the legal status of foreigners and stateless persons in the Russian Federation remain in force due to the threat of the further spread of COVID-19

Earlier in spring 2020 temporary measures were introduced to regulate the legal status of foreigners and stateless persons in the Russian Federation in connection with the COVID-19 pandemic. These measures remain in force until 15 December 2020.

A provision has also been introduced that allows foreign citizens to leave the Russian Federation for their countries of citizenship based on documents that prove their identity and are recognised in the Russian Federation if the validity period of such documents expired after 14 March 2020.

Decree of the President of the Russian Federation dated 23 September 2020 No. 580 “On amendments to Decree of the President of the Russian Federation dated 18 April 2020 No. 274 “On temporary measures regarding the regulation of the legal status of foreign citizens and stateless persons in the Russian Federation in connection with the threat of the further spread of the novel coronavirus infection (COVID-19)”

Russia and Cyprus have agreed to increase the withholding tax rate on dividend and interest payments up to 15%

On 8 September 2020, the protocol was signed amending the Russia – Cyprus Double Tax Treaty in terms of increasing the withholding tax rate up to 15% in respect of dividend and interest payments. The protocol also provides for several exceptions.

The ratification of the protocol should take place by the end of 2020 for the protocol to enter into force on 1 January 2021.

Information of the Ministry of Finance of Russia dated 8 September 2020 “Russia and Cyprus signed a protocol on changing the tax agreement between the countries”

Foreign citizens receiving income from Russian organizations will be subject to tax registration

The Russian Ministry of Finance has updated the procedure for registration of foreign citizens with Russian tax authorities.

Foreign citizens who do not have any place of residence, real estate or vehicle in Russia, but who received income from a Russian organization or individual entrepreneur, will be subject to tax registration in Russia. Such citizens will be registered with Russian tax authorities based on information provided by tax agents.

Order of the Ministry of Finance of Russia of September 11, 2020 N 188n “On approval of the peculiarities of accounting in tax authorities of individuals - foreign citizens and stateless persons who are not individual entrepreneurs”.

The Government has adjusted the list of international, foreign and Russian prizes that are not subject to personal income tax

The Russian Government has adjusted the list of international, foreign and Russian prizes for outstanding achievements in science and technology, education, culture, literature, art, tourism and media, that are not subject to Russian personal income tax. New prizes included.

Decree of the Government of the Russian Federation of September 9, 2020 N 1376 “On amendments to the list of international, foreign and Russian awards for outstanding achievements in the field of science and technology, education, culture, literature, art, tourism and the media, the amounts of which received taxpayers are not subject to taxation, and the recognition as invalid of some acts of the Government of the Russian Federation and certain provisions of some acts of the Government of the Russian Federation” (the document is due to enter into force on 1 January 2021)