Companies can pay taxes and contributions on behalf of one another

Taxes and contributions payments, both personal and corporate, can be paid by a director, employee, contractor or partner organisation. The amendment regarding taxes entered into force in November 30, 2016; and the amendment regarding contributions took effect in the beginning of 2017.

This reform offers some clear advantages – for instance, if company’s bank account is blocked, it has the opportunity to still pay its taxes through another company. But the amendment also has its risks and is therefore recommended to apply with caution. 

There are two arguments to consider:

  • tax authorities can use payment orders of another company as proof of business split and interdependence;
  • inspectors may apply payments incorrectly and it will be a delinquent tax.

Companies’ tax debts will not be held secret

From the January 1, 2016 data on insurance contributions was made public. Since June 1, 2016 additional data on tax debts, income and expenses in accounting statement was opened to public access. Starting July 1, 2017 the Federal Tax Service of Russia will publish new public information about companies on its website, including information about penalties for tax abuse, tax treatment and tax debts.

Increases of the minimum wages

The amendment to Federal Law regulating minimum wage amount was signed on December 19, 2016. From July 1, 2017 the regional minimum wage will increase from 7500 rubles to 7800 rubles. The minimum wage in Moscow was recently increased to 17561 rubles and in Moscow region increased to 13750 rubles.

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