From March 30 to April 3, 2020, non-working days have been established with the retention of wages for employees. This measure does not apply to employees of continuously operating organizations, medical institutions and pharmacies, organizations providing the population with food and essential goods, performing urgent work under emergency circumstances and carrying out urgent repair and loading and unloading operations. The corresponding decree was signed by the President and published on the Kremlin's website.
By the end of this year, sick leave payments will be calculated based on the amount of at least one minimum wage (minimum wage) per month – 12,130 rubles.
The amount of the minimum payment for unemployment benefits will be increased to the level of the minimum wage. Now the standard maximum payment for such a benefit cannot exceed 8 thousand rubles per month.
It is planned to introduce the so-called holidays on consumer and mortgage loans for Russians whose monthly income has decreased by more than 30% due to the crisis. Such persons will have the right to temporarily suspend the servicing of their debt and prolong it without paying penalties. The Bank of Russia has been instructed to provide a similar mechanism for prolongation of loans for individual entrepreneurs.
For small and medium-sized businesses engaged in the areas most affected by the crisis (their list will be monitored and adjusted by the Government), a deferral is granted for the payment of all taxes, with the exception of VAT, for the next six months. Additionally, a postponement for the payment of contributions to extra-budgetary insurance funds will be introduced for microenterprises.
The amount of insurance premiums for such companies will be reduced from 30% to 15% (the reduced rate will apply to the amount of each employee's salary exceeding one minimum wage). This measure will be applied even after the crisis is over due to the epidemic.
For the above-mentioned companies, it will also be possible to obtain a deferral on the repayment of loans for a similar time period - the next six months. In addition, a six-month moratorium is being introduced on the filing of creditors' applications for the bankruptcy of companies and the collection of debts and fines.
The procedure for taxation of income in the form of interest and dividends paid from Russia to offshore jurisdictions will change. The tax rate for such payments will be fixed at 15%. Based on this decision, the agreements of the Russian Federation on the avoidance of double taxation with some states will be subject to adjustment. If foreign states disagree with this measure, Russia will withdraw from the relevant agreements unilaterally.
A tax of 13% will be imposed on interest income on bank deposits and investments in debt securities for citizens whose total amount of relevant deposits or investments exceeds 1 million rubles. It is planned that all additional budget revenues received from the implementation of the last two measures will be used to finance support for families with children and help people who are facing unemployment or are on sick leave.
Additionally, it should be noted that a number of measures have already been introduced in the Russian Federation in connection with the crisis epidemic situation. For example, on-site tax and customs inspections were suspended; annual general meetings of shareholders were allowed to be held in absentia; tax holidays were announced for taxpayers in the fields of tourism, air transportation, sports and art.
However, it is worth noting that the work of the courts was significantly limited. In accordance with the Decree of the Supreme Court of the Russian Federation, in the period from March 19 to April 10, 2020, court sessions will be held only on urgent cases. At the same time, the categories of cases for which meetings are not held will be considered in the usual manner.
We will follow explanations about the legal possibilities of implementing these measures and keep you informed of all changes.
Our employees are still in touch and are always ready to help you with any issues that arise.