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Profit tax changes in Russia 2017. The reasons for Bank account blocking

A new order in tax rates on profit between budgets, rules of record the expenses for creation the bad debts provision and loss record for the period from year 2017 till 2020 was put into Tax Code.

In accordance with paragraph 1 of Article 284 the companies pay to the federal budget 3% and to the regional budget 17% starting from the beginning of the year 2017.

Full list of profit tax rates in the year 2017 can be found in the Article 284 and Article 309 of the Tax Code of Russian Federation.

It’s also mentioned in paragraph 2.1. of Article 283 of the Tax Code of Russian Federation that according to the new order of loss record a company is eligible to amortize the past loss on the amount not more than 50% of tax base of the current period. But it’s possible to postpone the loss for the future as long as possible, like it’s said in the paragraph 2 of Article 283 of the Tax Code of Russian Federation. New rules are applied to the loss which a company received on the results of the year 2007 and later.

The rules of record the expenses for creation the bad debts provision were also changed. Earlier on, the amount of the created bad debt provision calculated by the results of tax period (quarter, half a year, 9 months) couldn’t exceed 10% from the income received by the company for the mentioned tax period. Starting from the year 2017 when calculating the above mentioned provision its amount shouldn't exceed 10% from highest income for the tax period (quarter, half a year, 9 months) or income for the previous year.

The reasons for Bank account blocking

The reasons for the blocking of a current account are regulated by the tax legislation. The Bank suspends transactions on the current account if the Bank receives from tax inspection the Decision ordering the suspension of operations on a taxpayer’s accounts. There is a similar situation in case with the abolition of the accounts blocking after receiving the Decision to cancel the accounts blocking the Bank unblocks a frozen account.

There are the following reasons for the blocking of a Bank account:

     1.Tax, penalties and fines arrears

In this case the amount of arrears specified by the tax authority in the decision to suspend transactions is locked the account.If it will be a few decisions the Bank will freeze the total amount of these decisions. If the tax inspectors specify multiple accounts of company in a decision the Bank freezes all transactions up to the amount of arrears for each account: not only the accounts in rubles but also foreign currency accounts.

In case when the amount of arrears in a current account of the company as specifiedin a decision is more the amount of the arrears, the currency account is not blocked and the amount of the arrears are blocked only. The company may dispose of the remaining sum on the account. If the amount of arrears will exceed the amount of currency balance onthe account, the account will locked.

      2. Declaration late granting and 6-НДФЛ (6-individual income tax)

If the tax authority does not get the Declaration within up to 10 days after deadline the declaration, granting the Bank freezes currency balance on the account.

It can happen when you grant the Declaration by post when the inspectors do not get a letter in time.

      3. Interlocutory injunction of performance of obligations

In accordance with paragraph 10 of Article 101 of the Tax Code of the Russian Federation in case of failure of the solution verification, the tax authority can make a decision to bring to responsibility for tax violations committing in the form of interlocutory injunction - the account blocking.

Above mentioned interlocutory injunction works only if the inspectors put under a prohibition on company assets assignment and the total value of assets according to balance sheet is less than the arrears amount. The tax authority has a right to block the sum which is a difference between arrears and value of distrained assets only, not all cash on the account.

The Decision of the account blocking is invalid if the tax authority infringes an application procedure of interlocutory injunction. For example, it’s impossible to block an account if the tax officials didn’t make a procedure such as a prohibition of company assets assignment.

    4. The electronic document flow doesn’t connect with tax authority

If the company submit a reports using the electronic document flow the company must send to tax authority a receipt of electronic request acceptance during 6 working days from the sending date of this request by the tax authorities. Otherwisethe inspectors have a right to block the current account of the company. This procedure is described in paragraph 5.1 of Article 23 of the Tax Code. Alsothere is a note in paragraph 3 of Article 76 of the Tax Code of RF that the tax authorities have 10 working days to block from the overdue date.

In addition, if the company reports to tax office using the Internet, the company has to organize not only sending but also receiving of electronic documents from the Tax Authorities. The tax Code gives 10 days for the obligation to provide reports electronically as described in paragraph 5.1 of Article 23. This information is specified in paragraph 3, Article 76 of the Tax Code, the Inspectorate has the right to block the account because of duty breach.

Should any questions arise in connection with the above or if you need any additional information, please contact LEINONEN specialists.


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