news and resources
News
Last updated: 16.07.2010
I do realise that visitors
looking for useful information on this website would like to
see some examples of my recent cases. Here are a few typical
issues I have advised my clients in the past:
-
Entering the Russian market, GOST &
Russian
Ministry of Health
certification
and
registration of
medical device and equipment
for a manufacturer and supplier of
infection control products.
-
Obtaining
commercial credit for purchasing a land and
subsequent hotel building at the seaside resort in
the Kaliningrad region, development company.
-
Application of Russian law to
End-User
Software Licence Contract
for
a company delivering
software
solutions for pharmaceutical industry.
-
Resolution of Complexity
in existing rules for organisation and registration of
sweepstakes in Russia, for sales promotion agency.
-
Following
necessary terms and conditions in the process of
registration of reversed auction bidding in Russia,
internet auction company.
-
Agreement on employment of company’s
Russian contractor for
research,
development and programming of software products, hotel
reservation software company.
-
Methods
of "Invention" patenting in Russia for
inventions development company; due diligence services
related to their partner company from Russia; drafting
and translation
of Intellectual Property Rights
Agreement.
-
Enforcement of agency agreement and resolution of
dispute with Russian customer, creative design
consultancy.
-
Market and industry research and analysis
in Kaliningrad region; setting up a company to deal with
the packing of food supplements
in the Special economic zone (SEZ) in the Kaliningrad,
rental of premises for company production, employment of
10 persons staff, customs clearance and certification of
production, producer of
food supplements.
Open Dialogue
- a training programme for lawyers from the Kaliningrad region
of Russia continues
The third
stage of the programme has been successfully completed in
Kaliningrad, supported by Foreign and Commonwealth Office in
Russia, Global Opportunity Fund
Sustainable Development
Programme.
40 representatives of legal system of the
Kaliningrad region (judges, investigators and barristers)
were trained in mixed groups.Two
seminar courses, were organized by the
Kaliningrad Resource Informational Analytical
Centre (RIAC) and
held
in April 15-19 and May 4-8, 2009 in
Svetlogorsk, Kaliningrad region, Hotel "Baltika".
The European
Standards of Human Rights and Public Justice in the Russian
Federation - international conference
I was recently
involved in planning and development of international
conference – “The European Standards of Human Rights and
Public Justice in the Russian Federation, innovation
methods in the legal practice of the Kaliningrad region”,
financed by Foreign and Commonwealth Office in Russia.
Conference was held in November 27 - 28, 2008, hotel Heliopark
Kaiserhof, Kaliningrad
and attracted
lawyers representing Supreme and Constitutional
Courts of the Russian Federation, Russian Parliament, Human Rights Ombudsman of the Russian
Federation, Russian Ministry of Foreign Affairs,
Foreign Embassies, University of Nottingham Human Rights
Law Centre,
General Prosecutor Office, Federal and Regional
Courts, Militias and Bar Associations.
photo
Open Dialogue
- a training programme for lawyers from the Kaliningrad region
of Russia
I finished
management of the second stage of the programme “Open
Dialogue” – a training programme for lawyers from the
Kaliningrad region of Russia in European human rights
standards. In
December 17 - 23, 2007 Russian delegation visited
the University of Nottingham Human Rights Law
Centre and
met representatives of the British criminal justice system,
including the Magistrates Court and Crown Court, Crown
Prosecution Service, Barristers, Victim and Witness Protection
and the Police.
photo
The first
stage of the programme was previously successfully completed in
Kaliningrad, supported by Foreign and Commonwealth Office in
Russia, Global Opportunity Fund
Sustainable Development
Programme
and
provided an intensive training
from March - June 2007.
It consisted of a number of seminar courses, organized by the
Kaliningrad Resource Informational Analytical
Centre (RIAC),
providing human rights training for practicing
lawyers representing the Courts of General Jurisdiction,
Military Courts, Militias and Bar Associations on European
standards of human rights.
.....›
Why it is
worth making investments in Kaliningrad
The Kaliningrad region
is the most western region, separated from the mainland of the
Russian Federation. Due to its geographical and political
location, especially after Poland’s and Lithuania’s joining
the EU, the Kaliningrad region is gaining a new challenge of
extending and developing co-operation with the European
countries in various fields, first and foremost, in economics.
This site of Kaliningrad City Hall give
you very useful economic and legal information on
investment environment in this region.
Adoption
in Kaliningrad
Recently I
have received a large number of queries about adopting
children from Kaliningrad and Russia in general and decided
to try and help people hoping to adopt. The following
article translated into English gives you some background
information on adoption in Kaliningrad and I am happy to
help directly should you wish to commission my professional
support. I can help with translation of documents through to
full legal support with my partners in Russia. I can help
guide you through the whole process as Russian legislation
on adoption from abroad is complicated and you will need an
English speaking Russian on your side......›
Information
Main Taxes Rates in Russia
|
Tax |
Rate |
|
Profits tax |
24% of the profit – main rate |
|
Simplified tax |
6% (“revenue” base); 15% (“revenue less listed expenses”
base) |
|
Withholding Tax
|
Foreign legal entities are subject to a withholding tax
15% - dividends
20% - interest, royalties,
rentals
10% -
on income from freight and international transportation
services rendered in Russia |
|
VAT |
18%, 10%, 0% |
|
Property tax |
2.2% of the annual average net book value of fixed assets |
|
Excise tax |
Determined by product |
|
State duty for securities emission |
0.2% of the nominal value of securities issue, but not
more than 100,000 roubles (£ 2000) |
|
State duty for using the Words “Russia”, “Russian
Federation” |
10,000 roubles ( £200) |
|
Mineral Royalty tax |
Depends of the minerals and deposits |
|
Personal Income tax |
Default rates – 13% for residents and
foreign
workers in the highly qualified expert category; 30% for non-residents;
35% prises |
|
Insurance
Contributions |
The sum is not exceeding 415 000
roubles (£9430)
– 26% , where :
Pension Fund – 20%
Social Security Fund – 2,9%
Federal Medical Insurance Fund – 1,1%
Territorial Medical Insurance Funds – 2% |
Paying taxes in Russia for foreign/British
residents
When you come to live
or work in Russia, the Russian tax you'll pay depends on
whether you have “resident” or “non-resident”
status over
there.
Residents and non-residents paying taxes in case they receive
income from the sources on the territory of the Russian
Federation. Foreign citizen can be a tax resident of the
Russian Federation if he resides on the territory of the
Russian Federation not less than 183 days of the calendar
year. Tax rates for residents and not residents are different.
13 % is for income received by tax residents; and 30 % is for
income received by tax non-residents on the territory of the
Russian Federation. An individual who is a non-resident of the
Russian Federation may be exempt from taxation by Russian tax
authorities, provided that he introduces (forwards) to Russian
tax authorities an official confirmation that he is a resident
of the state that has double taxation treaty with the Russian
Federation. Russia and U.K. has double taxation treaty from
1994 No. 3213. Thanks to that you can decide where you want to
pay your taxes in Russia or in U.K.
Law "On the
Legal Status of Foreign Citizens in the Russian Federation"
(Russian language) / Закон "О
правовом положении иностранных граждан в Российской Федерации"
(с изменениями на
19 мая 2010
года)
Defines the
legal status of foreigners in the Russian Federation, and
regulates conditions of their entry into and exit from Russia.
It regulates relations between foreigners and state and local
authorities in connection with the foreigner's temporary or
permanent stay in Russia, including those related to
foreigners' employment, commercial and other activities in
Russia.
Download
Travel rights for non-EU national family
members of EU/UK citizens within the European Union
Neither the UK nor other EU
countries such as Lithuania, Estonia, Latvia, Poland, Hungary,
Slovakia, Czech Republic, Ireland, Cyprus, Slovenia, and Malta
are currently signatories of the Schengen agreement that means
in order to travel to another EU country members of the family
of an EU/UK citizen should be required to obtain a visa.
Such visas, where they are necessary, should be granted free
of charge, and without undue formalities. This facilitated
system of obtaining a visa will apply to non-EU national
family members, however, only when they travel with an EU
citizen.
Download
Right of admission foreign/Russian spouse of a
British national to the UK without the need to obtain entry
clearance
In the case of a British national spouse/partner have been
lawfully resident in the other EEA country before applying to
enter the UK - it is not needed to obtain entry clearance.
More detailed explanation of European law
further.
Kaliningrad Visas
Kaliningrad
operates
a special visa system which allows visas to be issued at the
border on arrival, thus avoiding Russian embassies abroad and
complicated visa forms.
The
short-term tourist visas (for stays of up to 72
hours on the territory of Kaliningrad oblast only) to foreign
tourists (citizens of countries of the Schengen Treaty, the
United Kingdom, Japan) on requests of Kaliningrad tourist
agencies, that are registered for consular services at the
Representative Office
of Russian Ministry of Foreign Affairs and
have the right to issue short-term visas, but not later than
48 hours prior to a supposed entry of a foreign tourist. From
January 2009 visas also can be extended
for period of up to 3 days at the
border check points.
Download
Main Taxes
and Duties
Rates
in the Kaliningrad region
Download
Certificate of Origin in the Kaliningrad
Special Economic Zone
This is a new process of obtaining Kaliningrad certificate of
origin in correspondence with "Decision of the Government of
the Russian Federation No. 171 of March 30, 2006 on the
Endorsement of the Rules of Use of Criteria of Enough
Processing and Issue of Appropriate Certificates for the
Products of Processing of Commodities Imported under the
Customs Regime of Free Customs Zone Applied in the Kaliningrad
Region". Document contains an application form and list of
documents which is necessary to submit while application
process to
Kaliningrad Chamber of Commerce and Industry.
Download
Russian import duties
Find out the import duty for your
product is possible in the "Applied Tariffs Database"
of free
European Union Market Access Database
Law on the
special economic zone in the Kaliningrad region.
The new
Federal law "On the Special economic zone (SEZ) in the
Kaliningrad region" came into force on 1 April 2006.
Under that law
the new
zone will be operational for 25 years. In the first six years
entities will be exempt from the profit tax 100%, and they
will enjoy 50% discount in profit taxes for another six years.
In addition, investors will be exempt from the tax on
organizations’ property for the first six years of their
projects. But this is only for
investors who bring at least
one hundred and fifty million rubles of investment.
They won’t have to pay customs duties on commodities brought
to Kaliningrad for production purposes, as long as the
commodities keep within the regional limits. Visa formalities
will be reduced for investors.
Companies
which are registered before the law came into force have a
ten-year long transition period and can use the old
privileges. Privileges for them means that
goods,
manufactured in the Special economic zone (the fact that is
verified by the certificate on the goods origin) and exported
to the other countries and
the Russian Federation,
are exempt from Customs duties and other charges while going
through the Customs and being cleared (except the Customs fees
for drawing up the Customs clearance papers).
Download
On submission of an investment
declaration for SEZ resident
According to
the
Law № 16-FL “On
the Special economic zone in the Kaliningrad region which come
into force on 1 April 2006
the
Government of the Kaliningrad region has approved a special
form of an investment declaration for SEZ resident.
Now,
with coming into force of the new law on SEZ, applicants for
inclusion in the
Register
of
residents of the Special economic zone in the Kaliningrad
region should prepare and submit the
following documents:
·
an
application in the free form, addressed to the Head of the
Administration of
Special economic zone
(Minister of Economics of the Kaliningrad region F.F.Lapin)
on inclusion of the legal person into register;
·
copies of legal person’s foundation papers, certified by a
notary;
·
a
certified copy of the document, attesting that the legal
person has been entered in the general State register of legal
persons;
·
the certificate of registration
by the tax authority;
·
the investment declaration
page 1
page 2
·
the business - plan of
investment project.
This package of documents can be
sent by mail to the address: 236007, Kaliningrad,
Dmitry Donskoy street 1 or be brought into the reception
office of Ministry of Economics of the Kaliningrad region
(within working day) office 428 (phone: 599 024).
Civil
Code of the Russian Federation (Part One)
Part I of the Civil Code upholds
such rights as the rights to own and inherit property; to
engage in entrepreneurial activity; to establish independent
legal entities; and the protection of intellectual property
rights. Part I also defines concepts such as securities,
contractual rights, and the power of attorney.
Download
Civil
Code of the Russian Federation (Part Two)
Part II of the Civil Code
further expands on these new civil relationships, and contains
provisions governing certain types of agreements and the
rights to sign contracts, to rent property, to receive loans,
and to be compensated for injury.
Download
Map of Europe with the Baltic Sea Countries and Kaliningrad

to download
the great map click
here
Detailed
Kaliningrad Region Map
Download
Detailed
Kaliningrad Town Map
Download
Useful Links
www.russiatoday.ru - The Russia Today TV news
channel - which broadcasts in English 24 hours a day to
Europe, North America, Asia and Africa
www.rusemblon.org - The
Consular Department of the Russian
Embassy
www.ukinrussia.fco.gov.uk -
British Embassy, Consulates, UK Trade and Investment Section
in Russia
www.rustradeuk.org - The Trade Delegation of the
Russian Federation
www.diligencellc.com - Diligence - leading business
intelligence, research and analysis firm on Russian and
Eastern European markets
www.kaliningrad.mid.ru - Russian Ministry of
Foreign Affairs in Kaliningrad
www.rosoez.ru
- Russian
Federal Agency for the Special Economic Zones
www.kaliningrad-cci.ru -
Kaliningrad Chamber of Commerce
and Industry
www.kaliningradse.ru -
Kaliningrad
International
Stock Exchange
www.riac.org.ru - Kaliningrad Resource Informational Analytical
Centre (RIAC)
www.spbcci.ru -
St.
Petersburg Chamber of Commerce and Industry
www.mtpp.org
- Moscow
Chamber of Commerce and Industry
www.cci.lt
- Vilnius Chamber of Commerce, Industry & Crafts
www.unitedpartners.ee
- United Partners, one of my
partners organisations, a rapidly developing
Baltic investment bank
www.lawguru.com - Legal Knowledge and Attorneys
Database
www.lawru.com - International network of
experienced Russian lawyers and consultants
www.chukotka.org
-
Chukot
Autonomous Okrug Administration website with
former Governor Roman
Abramovich (now Chukotka Autonomous Okrug Duma Deputy (quite interesting), and more information is
here
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