RS Law digest Main changes in the Law of the Russian Federation from September 2, 2013 to November 1, 2013

Main changes in the Law of the Russian Federation from September 2, 2013 to November 1, 2013

December 2013

1. To the Olympics with a medical certificate

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sochi

Pursuant to Decree of the Government of the Russian Federation No 746 dated August 28th, 2013, medical certificates confirming the absence of certain diseases shall be presented in respect of foreign citizens involved in the construction and maintenance of the Olympic facilities in Sochi.

The Sochi 2014 Steering Committee and the State Corporation for the Construction of Olympic Facilities that entered into labour or civil law contracts with foreign citizens shall file with the Federal Migration Service of the Russian Federation or its territorial department an application for issuance of work permits and documents as prescribed by the Federal Migration Service of the Russian Federation subject to specific requirements determined by the Regulation.

Medical certificates confirming that a foreign citizen arriving in the Russian Federation in accordance with the procedure providing for the receipt of a visa does not suffer from drug addiction or any virulent disease endangering other people’s health which appears on the list approved by the Ministry of Health of the Russian Federation and a certificate confirming that he/she has no disease caused by the human immunodeficiency virus (HIV infection) shall be submitted by the Committee or the Corporation to the Migration Service department within 2 months following the work permit date. Non-compliance with this requirement will lead to cancellation of the previously issued work permit.

2. Olympic VAT

Decree of the Government of the Russian Federation No 757 dated August 31st, 2013 sets forth the rules for refund of the VAT on goods (work, services) acquired by foreign members of the Olympic Games organizing team, IOC foreign marketing partners for the needs of holding the Olympics in Sochi.

The VAT shall be refunded based on applications filed with the tax authority together with a set of documents, in accordance with the approved list (in general, a contract, invoices, payment documents or registered high-security forms).

As for hotel services, to have the VAT refunded, it is required to submit to the tax authority, together with the application, an agreement on accommodation arrangements entered into by and between an organization and the Steering Committee and a contract on guest accommodation arrangements entered into by and between the Steering Committee and a hotel; certificate of provision of hotel services; payment documents; invoices; services provision and acceptance certificate.

The documents may be submitted to the tax authority within 3 years after the latest of the following:

  • date of the invoice;
  • date of the actual payment for the goods (work, services), property rights.

Upon tax inspection, additional documents pertaining to a particular transaction may be requested both from participant party thereto and from any other persons holding relevant documents (information)

3. Notify the customs 2 hours beforehand

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zone

Starting from October 1st, 2013, a mandatory preliminary notification of the customs authorities with regard to goods imported into the territory of the Customs Union by railway transport was introduced (Resolution of the Eurasian Economic Commission Board No 196 dated September 17th, 2013).

It was established that any carrier, including a customs carrier, importing goods by railway transport must submit a preliminary notification at least 2 hours before crossing the customs border of the Customs Union.

Authorized economic operators, customs representatives, freight forwarders, persons entitled to own, use and/or dispose of the goods, or any other parties concerned shall submit the information about the goods to the carrier of the Customs Union member state where the place of transfer of the goods across the customs border of the Customs Union is located at least 4 hours before arrival of the goods. The carrier shall receive and consolidate the said information.

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students

4. Russia is ready to provide training for 15,000 foreigners

Pursuant to Decree of the Government of the Russian Federation No 891 dated October 8th, 2013 “On Establishment of Quotas for Provision of Education of Foreign Citizens and Stateless Persons in the Russian Federation”, the annual education quota of foreign citizens and stateless persons on account of the Federal Budget allocations shall not exceed 15,000 people.

5. Visa regime relaxed

On October 20th, 2013, the Agreement on Terms of Reciprocal Travels of Citizens of the Russian Federation and Citizens of Bosnia and Herzegovina will come into effect (Statement of the Ministry of Foreign Affairs of the Russian Federation of October 11th, 2013).

The Agreement signed on May 31st, 2013 in Moscow provides for the visa-free entry procedure for persons having an international passport for the period of up to 30 days during each 60 day period from the date of the first entry.

For holders of diplomatic and service passports, the visa-free entry procedure remains unchanged for periods of up to 90 days, and for employees of diplomatic missions, consular institutions and missions to international organizations and for their family members residing together with them – for the entire term of their accreditation.

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visa

Citizens of other categories, including those entering with the purpose of employment, shall be required to have a visa.

On October 30th, 2013, the Agreement on Relaxation of the Visa Issuance Procedure in respect of Citizens of the Russian Federation and Citizens of Japan will come into effect (Statement of the Ministry of Foreign Affairs of the Russian Federation of October 11th, 2013).

The Agreement stipulates the possibility for individuals and entities to execute direct invitations and the possibility to issue multi-entry visas to citizens of both countries for a period of up to 3 years subject to a number of conditions.

6. Who will be allowed to make money at the Olympics?

Decree of the Federal Migration Service of the Russian Federation No 387 dated September 23rd, 2013 defined the procedure for issuance of documents authorising labour activity of foreign citizens during the period of preparations to and holding of the Olympic Games in Sochi.

It was established inter alia that documents authorising labour activity in the territory of the Resort Town of Sochi with the term taking effect after December 31st, 2013 will be issued to:

foreign citizens granted a work permit pursuant to the Regulation on Streamlined Procedure for Issuance of Work Permits to Foreign Citizens Who Entered into Labour or Civil Law Contracts with Autonomous Non-Commercial Organization “Steering Committee of the XXII Olympic Winter Games and the XI Paralympic Winter Games of 2014 in Sochi” or the State Corporation for the Construction of Olympic Facilities and Development of the Town of Sochi as a Mountain Climate Resort and Arrived in the Territory of the Russian Federation During the Period of Preparations to and Holding of the XXII Olympic Winter Games and the XI Paralympic Winter Games of 2014 in Sochi approved by Decree of the Government of the Russian Federation No 758 dated October 13th, 2013;

foreign citizens who plan to work at the facilities that are required for holding the Olympic Games upon recommendation from the State Corporation Olympstroy or Administration of the Krasnodar Territory.

Until March 21st, 2014 inclusive, documents authorising labour activity to be issued regardless of the quotas for issuance of such permits will be issued to foreign citizens who plan to work in the territory of the municipal entity of the Resort Town of Sochi subject to recommendation from the State Corporation Olympstroy or Administration of the Krasnodar Territory.

Until March 21st, 2014, documents authorising labour activity will be issued if a foreign citizen produces the detachable part of the notification of his/her stay in the territory of the Resort Town of Sochi.

The licenses authorizing labour activity to individuals in the territory of the Krasnodar Territory will be issued beginning March 22nd, 2014.

7. Who will be regarded as “major”?

Decree of the Government of the Russian Federation No 965 dated October 28th, 2013 defined the performance indicators for foreign companies to classify them as major and the criteria for the companies involved in the project on the creation of the Skolkovo Innovation Center and the International Financial Center in the Russian Federation in order to issue 5-year ordinary business visas to the employees thereof.

In particular, the financial and economic performance indicators of foreign companies required for their classification as major in the aggregate include:

the amount of a foreign company’s proceeds from sales of goods (work, services) for the last reporting calendar year – at least 30 billion roubles (not less than the equivalent amount in a foreign currency) or the amount of a foreign company’s net profit for the last reporting calendar year – at least 6 billion roubles (not less than the equivalent amount in a foreign currency);

the amount of a foreign company’s assets – at least 30 billion roubles (not less than the equivalent amount in a foreign currency);

the amount of a foreign company’s investments made in the territory of the Russian Federation into the objects of civil law rights during 1 calendar year – at least 90 billion roubles, including investments into authorized (share) capital of Russian entities meeting one of the following conditions:

the share of a foreign company in the authorized (share) capital of a Russian entity is at least 10%, provided that the authorized (share) capital of the said Russian entity is at least 150 million roubles or the net asset value of this Russian entity is at least 150 million roubles;

the share of a foreign company in the authorized (share) capital of a Russian entity is at least 50%, provided that the amount in tax liabilities paid by the Russian entity based on the results of one of the last 3 years is at least 10 million roubles or the increase in the average number of the Russian entity’s employees is at least 35 employees in the last 3 calendar years.

8. Electronic communications in international contracts are applicable, but subject to a proviso…

Russia has adopted the UN Convention on the Use of Electronic Communications in International Contracts dated November 23rd, 2005 subject to certain reservations (Decree of the Government of the Russian Federation No 940 dated October 24th, 2013 “On Adoption of the United Nations Convention on the Use of Electronic Communications in International Contracts).

It was established that:

  • the Russian Federation will apply the Convention when the parties to an international contract agree on application thereof;
  • the Russian Federation will not apply the Convention to transactions with regard to which the law of the Russian Federation prescribes a notarized form or a requirement on the State registration and to any merchandise sale and purchase transactions with regard to which there are any restrictions or limitations as to transfer across the customs border of the Customs Union;
  • when used in respect of the Convention, the Russian Federation interprets the term “international contracts” as civil law contracts to which foreign citizens or foreign entities are parties and those containing any other foreign element.

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