Updates for VAT, corporate profit tax and penalties calculation in Russia

In the period from March 9, 2022 to December 31, 2023, the interest rate for penalties calculation will be calculated as 1/300 of the refinancing rate. This means that the rules on the calculation of penalties in the amount of 1/150 of the refinancing rate will not apply from the 31st calendar day of delay in paying taxes. The new rule also applies to arrears that arose before March 26, 2022

For VAT, the list of taxpayers eligible for the declarative procedure for VAT refunds for the tax periods of 2022 and 2023 has been expanded.

Also during 2022, organizations that pay monthly advance payments within a quarter can switch to paying them based on actual profit. This can be done starting from the reporting period of three months, four months, and so on until the end of the calendar year.

To exercise this right, company must notify the tax authority no later than the 20th day of the last month in the reporting period from which the organization switches to a different procedure for paying advances.

For organizations in the IT industry for 2022 — 2024, a profit tax rate of 0% is set.

If a Russian company is forgiven a debt under a loan agreement concluded before March 1, 2022 with a foreign company or foreign citizen, it is not necessary to take into account the amount of such loan in the tax base for corporate profit tax.

For 2022 and 2023, special rules have been established for calculating the maximum amount of interest that can be taken into account in expenses on controlled debt that arose before March 1, 2022:

  • the amount of debt in foreign currency must be determined at the exchange rate of the Central Bank of the Russian Federation as of the last reporting date of the reporting or tax period. At the same time, it should not exceed the value as of February 1, 2022;
  • for the last day of the period, equity capital is calculated without taking into account exchange rate differences that may arise due to the exchange rate difference compared to the indicator as of February 1, 2022.

For exchange rate gains that arose in 2022–2024, and negative ones that arose in 2023–2024, a special procedure has been established: they must be recognized in income and expenses on the date of termination or fulfillment of a claim or obligation.

For positive differences, this rule was extended to legal relations from January 1, 2022, and for negative differences, it will come into force only from January 1, 2023.