COVID-19 in Russia: latest tax and customs developments

Available languages: RU

Russian state bodies are continuing to enact previously announced support measures in the area of tax and customs, which bring more clarification and details to the initial announcement, and introduce new support measures.

The Federal Customs Service determines the list of goods subject to 0% import rates and introduces export limitations

The Russian Federal Customs Service announced* the introduction of a zero import rate for goods preventing the spread of COVID-19.

The list of goods subject to a reduced rate is determined by the Eurasian Economic Commission (EEC) in Decision No. 21* dated 16 March 2020 and includes individual protective gear, disinfectants, diagnostic reagents and certain types of medical equipment and materials.

This exemption can be applied to the goods listed provided that they are imported to Russia and released for internal consumption during the period 16 March to 30 September 2020.

At the same time, EEC Decision No. 41* prohibits the exportation of individual protective gear, means of personal protection, disinfectants and certain other medical goods listed in this Decision until 30 September 2020.

The Russian government determines the “vulnerable” sectors of the economy to benefit from support measures

After consulting with the business community, the Russian Ministry of Economic Development has determined the sectors, which are the most affected by the current economic situation concerning COVID-19.

The list published* on the Ministry’s official website includes in particular the following sectors:

  • transport;
  • culture and entertainment;
  • sports;
  • travel and tourism;
  • food services;
  • further education;
  • organisation of conferences and exhibitions;
  • provision of household services.

As previously reported, the companies in the listed sectors will benefit from a number of support measures, including in the area of tax and customs.

The Federal Tax Service extends the deadline for submitting annual financial statements

The Russian Federal Tax Service has indicated* that the deadline for filing financial accounting statements for 2019 has shifted from 31 March to 6 April 2020 since the week from 30 March to 3 April was announced as a non-working period in Russia.

It is anticipated that similar measures will be introduced in relation to certain types of tax reporting.

Freeze of corrective or suspension measures for small and medium-sized enterprises (SMEs)

The Russian Federal Tax Service has also issued an order* to Interregional Inspectorates that no corrective measures or suspension of operations on bank accounts resulting from tax underpayments should be taken against SMEs until 1 May 2020.

The Federal Tax Service issues clarifications on announced tax support measures in a Q&A

The Federal Tax Service published* clarifications on widely discussed anti-crisis measures proposed by the President in his address to the nation on 25 March and other initiatives the Russian government had previously announced.

These clarifications include among others:

  • a tax deferral to be granted to taxpayers who are eligible provided they file an application with regional tax authorities;
  • the continuation of the collection of tax arrears from SMEs that arose before the announcement of the tax holidays; and
  • the further clarification of details on how tax deferrals will be applied (including application of penalties and late payment interest) when the relevant tax legislation is enacted.

Additional tax measures adopted by the Moscow government

When the high alert regime was introduced in Moscow, local authorities decided* to provide the city’s businesses with additional tax relief measures, namely:

  • extending the deadline for payment of the sales tax for the first quarter of 2020 from 25 April to 31 December 2020; and
  • extending from 30 April to 31 December 2020 the deadline for making advance payments on corporate property tax and land tax payable for the first quarter of 2020 (applicable to taxpayers engaged in food services, tourism, culture, sports, leisure activities and hotel).

If you have any questions on this eAlert, do not hesitate to contact CMS Russia experts Dominique Tissot, Maria Kabanova or your regular contact at CMS Russia.

CMS has created a Coronavirus Hub dedicated to the issues raised by the COVID-19 pandemic, which is available here. This hub gives you full and permanent access to content created by CMS Russia lawyers and CMS offices around the world in response to the crisis. The hub is updated regularly.

We remain available at all times to address any requests or difficulties you may have on a one-to-one basis.You can be in immediate contact with our experts by emailing [email protected].

*In Russian