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Significant Changes Introduced to the Russian Tax Code
Even though the worldwide sharp economic downturn seems to be drawing to a close, Russian legislators continue to adopt “anti-crisis” measures, especially in the area of tax legislation. In this context, on 27 July 2010, Russia’s President signed the Federal Law “On the modifications to part I and part II of the Russian Tax Code and other legislative acts of the Russian Federation, as well as on recognition of certain legislative acts of the Russian Federation as ceased in force in relation to settlement of arrears in taxes, duties, fines and penalties and certain other questions of tax management” No. 229-FZ (the “Law”).
The Law, with most of its provisions set to enter into force one month after the day of its official publication1, is mainly aimed at reviving the provisions of the Russian Tax Code (part I dated 31 July 1998, No. 146-FZ, part II, dated 5 August 2000, No. 117-FZ) (the “Tax Code”) concerning the ability to arrange a tax rescheduling. In principle, these rules, which are currently inoperative, are most relevant in times of crisis. For this reason, some commentators say that this Law, adopted in the first reading last year, is rather belated. However, it is noteworthy that the Law is complex and, besides changing the terms for tax payment, concerns several other important areas of tax legislation.
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