RUSSIA : COVID-19 BUSINESS IMPACT: PUTIN’S MESSAGE LEGAL ALERT

26/03/2020

 

On March 25, Vladimir Putin proposed a number of emergency measures due to the coronavirus pandemic. Many of them are of social nature and focus on providing support to citizens and families who are suffering troubles due to the economic environment deterioration in the COVID-19 context.

In addition, it was announced that the government will expand the range of measures aimed at supporting business. The President released the following:

• The amount of insurance premiums from salaries exceeding the minimum wage for small and medium-sized businesses has been halved to 15%.

• A six-month moratorium is being imposed on filing bankruptcy applications, collecting debts and fines from businesses affected by the epidemic.
• Small and medium-sized businesses will receive a six-month grace period on all taxes other than VAT. Microenterprises will also receive a defferal in insurance payments. Such enterprises, should they are affected by the epidemic, will also receive a six-month holiday on interest and capital repayments.

Finally, the President’s message ended with the news of wealth taxes introduction:

• A 15% tax will be imposed on dividends and interest on deposits that are withdrawn to foreign accounts. To do this, double taxation treaties will be amended, and should the other party disagree, Russia will have to unilaterally withdraw from it.

• A 13% personal income tax will be imposed on interest on deposits and investments in securities, if their total amount exceeds 1 million rubles.