The State Duma of the Russian Federation adopted in the second reading the norms that allow to exempt newly created small and medium business from taxes in 2020 year in connection with the coronavirus pandemic.  The relevant norms were formalized as amendments to law draft No. 987383-7 “On amendments to Art.  146 h. II of the Tax Code of the Russian Federation (in order to clarify transactions that are not subject to VAT taxation with business activities by debtors and being recognized as bankrupts)".

    “In accordance with this document, a tax and fees exemption is provided to small and medium business operating in the most affected sectors of the economy and included in the register of small and medium business both on the basis of tax reporting for 2018 year and their creation in period from December 1st of 2018 to February 29th of 2020.

    This would significantly increase the coverage of entrepreneurs who will receive tax exemptions in the Moscow Region"- commented the Business Ombudsman of the Moscow Region Vladimir Golovnev.

    To receive this benefit, an organization or individual entrepreneur should  comply with the following conditions:

- To carry out activities in the sectors most affected  of Coronavirus infection;

 - To be included in the register of small and medium business by March 1st (based on reports for 2018);

 - Non-profit organizations should  be also included in a special list.

    The new condition is that the new business subject should be seen in the EGRUL or EGRN  from December 1st of 2018 to February 29th of 2020. This provision applies to legal relations arising from April 1st of 2020 year. 

    You can check the possibility of exemption from taxes and insurance fees for periods required by following the link of the Federal Tax Service of Russia: https://service.nalog.ru/covid4/?roistat_visit=285124.

    “If you have already paid taxes, you can apply for a refund or for the tax overpayment being set-off"- added Vladimir Golovnev.