Baker Tilly in Russia

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Russian Register of small and medium sized enterprises will be subject to update on July 10. Inclusion of the company to the register of SMEs allows the company to apply the reduced rates of insurance contributions to the personnel compensation fund (15% on the place of 30%) during the year (from the July 2021 till the June 2022) with the right of prolongation.

For companies in which foreign participants with a share of more than 49% are represented, additional tests (recognition of the Russian organization as an SME subject) have been established directly in relation to the foreign participant:

  • the amount of income for the year (not more than 2 billion Russian rubles),
  • average headcount per year (max 250 employees),
  • the country of registration of the participant is not listed in the “black list” of the Ministry of Finance of Russia (the Decree of the Ministry of Finance of Russia from 13.11.2008 No.108n).

Compliance with these criteria in relation to the foreign participants of the LLC shall be verified exclusively by audit organizations, in relation to the foreign participants of the JSC it shall be verified by the shareholder registrar (Cl. 6.1, 6.2 of Art. 4.1 of the Federal Law “On the Development of Small and Medium Enterprises in Russia”). Based on the results of the audit, the auditor shall send to the Federal Tax Service of Russia the list of LLCs, in respect of foreign participants of which the above criteria are fulfilled. The information shall be submitted to the Federal Tax Service in the period from 1 to 5 of the month. In the case the information is not presented to the Russian Tax Service in the July, such company will be forfeited to apply the benefit from July till the month the information is presented. Therefore, to fully apply the benefit the information should be presented to the Russian Tax Service from 1 till 5 July 2021.

Upon your request, Baker Tilly experts are ready to provide the appropriate service (to verify the criteria for foreign participants) for both LLC and JSC. At the same time:

  • in relation to LLC, the service is provided for the purpose of including LLC in the list formed by the audit organization and sent to the Federal Tax Service of Russia,
  • in respect of JSC, the service is performed for the purpose of confirmation by the audit organization of fulfillment of the criteria of income, number of average headcount and place of registration of a foreign participant of the Russian JSC, which may be submitted by JSC to the address of the holder of the register of JSC participants (for the purpose of inclusion of JSC in the list formed by the holder of the register of JSC participants and sent to the Federal Tax Service of Russia).

The service may be requested by:

  • companies (LLC or JSC) that are not currently included in the SME register (for the purpose of their inclusion in this register),
  • companies (LLC or JSC) currently listed in the SME register (in order to prevent their exclusion from the register and, consequently, the loss of the right to benefits for SMEs).

If you are interested in this service, please contact Revaz Chitaya (Revaz.Chitaya@bakertilly.ru,) or your personal manager.