Rules on taxation of profits of controlled foreign companies imposing a duty on legal entities who are Russian tax residents to assess, report and pay taxes on undistributed profits of foreign legal entities and foreign unincorporated structures, where they own, directly or indirectly more than 25% of the charter capital; or more than 10% of the charter capital if Russian persons in total own more than 50%, or which they otherwise control, subject to certain exemptions and temporary rules. 

Value of real estate generally determined based on methods of mass assessment (as opposed to individual assessment of property value), recorded in the State Real Estate Cadastre and used for tax and land law purposes.

Agreement between competitors resulting in price fixing, bid rigging and (or) market sharing.

Consolidated constitution of a legal entity that includes information on the company name, charter capital etc.

Total value of all shares owned by shareholders of a legal entity, which is specified in its charter.

A contract between contractor and client as opposed to an employment contract between an employer and an employee. It is illegal to substitute employment contracts with civil-law contracts to escape from labour law regulations.

Optional body elected by the general shareholders meeting that is responsible for direct control over the legal entity; it is generally headed by the General Director,

Method of individualising a legal entity that is to be specified in its constitutional documents.

Federal court generally responsible for deciding whether federal and some regional legal acts (including statutes) comply with the Constitution.

Documents that serve as the basis for activities of a legal entity. Commercial legal entities operate based on the provisions of their charter.

Civil-law contract between contractor and client under which the former undertakes to perform construction works for the latter for payment.

Legal right granting the creator of an original work exclusive rights for its use and distribution, which are valid for the author’s lifetime plus 70 years after his decease, after which the product can be freely used by the general public.

Tax payable by Russian and foreign legal entities carrying out activities in Russia through a permanent establishment or receiving income from Russian sources. The tax base is defined as total income received by a taxpayer minus related expenses and allowable deductions. The maximum corporate income tax rate is 20%.

Tax levied on both personal property and real estate. The tax base is the average annual residual value of taxable property or cadastral value of real estate. The tax rate is set at the regional level, but shall not exceed 2.2%.

Documentation setting forth the price of construction works’ stages to be performed under a construction contract.

Specialised court dealing with intellectual property disputes, which is part of the system of commercial (arbitrazh) courts. It is a first instance court hearing disputes over the establishment and validity of IP rights and challenges to regulatory and non-regulatory acts in the IP field. 

Courts responsible for hearing civil, criminal and administrative cases, generally of non-commercial character, most often between citizens, that have 4 levels: first instance court, court of appeal, cassation court, and court of supervisory appeal (Supreme Court). A ruling issued by the Supreme Court’s Presidium cannot be further appealed.

Individuals whose permanent place of residence is located outside Russia; foreign legal entities; enterprises/organisations that are not legal entities, organised and located outside Russia; and rep offices or branches of foreign legal entities in Russia.

Russian citizens and other individuals whose permanent place of residence is Russia, except for individuals who permanently live outside Russia for more than one year; Russian legal entities; rep offices or branches of Russian legal entities outside Russia; diplomatic and consulate and other missions representing Russia, the Russian government, constituent entities of the Russian Federation, and municipal units.

Transaction that is subject to Russian currency regulation rules (i.e. a certain transaction between a currency resident and a currency non-resident, provided that the its amount exceeds USD 50.000).

Classification of goods under the EACU Harmonised Commodity Description and Coding System by the declarant prior to filing a customs declaration, subject to verification by customs authorities.

Procedure during which goods entering or exiting the EACU are declared, verified, inspected, paid for, and released in or outside the EACU customs territory.

Declaration of information on imported/exported goods prepared on a prescribed form that contains information on the chosen customs procedure and other peculiarities necessary for the release of goods.

Compulsory payment collected by customs authorities upon import/export of goods alongside other customs payments, calculated based on either the customs value of goods, or their physical characteristics.

Import/export customs duties, VAT, excise duties, customs fees payable upon import/export of goods.

Set of rules establishing the requirements for import/export, post-customs use of imported/exported goods.

Legal entity entered into a special register that carries out customs clearance of goods of behalf of the declarant.

Value of imported/exported goods which serves as the base for the calculation of import/export customs duty.