Unlabeled advertising costs cannot be deducted for profit tax purposes starting 2025
The new law also applies to expenses on advertising on prohibited social networks
As of January 1, 2025, amendments to the Russian Tax Code come into force, which forbids to deduct for profit tax purposes expenses on unmarked advertising and advertising on resources blocked in Russia (Federal Law No. 416-FZ of November 29, 2024). As of September 2022, online advertising is subject to mandatory labeling: this involves adding to the advertisement the notation “Advertisement”, an identifier and information about the customer, as well as entering information into the Unified Register of Internet Advertising (ERIR) (https://erir.grfc.ru/).
Starting 2025, companies will not be able to include into deductible expenses the costs of online advertising:
- if information about it has not been properly transferred for the publication in the ERIR;
- if it was published on a resource to which access is restricted in Russia;
- if it was published on a resource of a foreign legal entity, which does not comply with the Russian legislation related to Internet regulation.
Source: http://publication.pravo.gov.ru/Document/View/0001202411290003
Amounts of per diem allowances for business trips are increased
The amount of per diem allowances which are not subject to personal income tax has changed.
The same Federal Law No. 416-FZ of November 29, 2024 changes the amounts of per diem for business trips. In 2024 the amount of per diem is RUB 700 within Russia and RUB 2,500 abroad.
From 2025, the non-taxable limit of per diem outside of Russia will be increased to RUB 3,500. For trips within the country, the per diem limit will remain the same.
There is no legal limit on the amount of the per diem allowance but amounts in excess of the above limits are subject to personal income tax and social contributions.
Amendments to the taxation of digital currencies
Digital currency is recognized as property for taxation purposes
Federal Law No. 418-FZ published on November 29, 2024, changes the approach for taxation of transactions with digital currency.
Income from digital currency transactions will be combined into a mutual tax base with income from securities transactions. Individuals will pay personal income tax: 13% on total income up to RUB 2.4 million per year and 15% on the excess.
Income of legal entities from mining digital currency will be taxed at the standard income tax rate (25% from 2025). Operations related to mining and operations with digital currency will not be subject to VAT.
In addition, mining operators will be obliged to report to the Federal Tax Service information about those who are engaged in mining using their infrastructure, otherwise they will face a fine.
The changes will come into force on January 1, 2025.
Source: http://publication.pravo.gov.ru/Document/View/0001202411290004
Introduction of criminal liability for the submission of false invoices
The amendments were introduced by Federal Law No. 406-FZ dated November 23, 2024.
The law supplements the Russian Criminal Code with article 173.3, which establishes liability for the sale and/or submission to the tax authorities of knowingly false VAT-invoices, as well as of reports and tax declarations on behalf of front organizations or using personal data that were obtained illegally. Criminal liability will follow if large income (more than RUB 3.5 million) is obtained with the help of forged documents.
Liability ranges from a fine of RUB 100-300 thousand to 7 years of imprisonment.
Source: http://publication.pravo.gov.ru/document/0001202411230027
The main directions of policy in the field of accounting and auditing up to 2030 have been approved
The current system will not be substantially revised. Spot adjustments will be made if necessary.
Among the main directions it is planned to develop the system of accounting and financial reporting standards and increase the degree of digitalization of financial reporting.
Thus, by 2030 the adoption of the basic set of FSAS should be completed. In addition, it is planned to expand the functionality of the State Information Resource of Accounting Reports (SIRBO) https://bo.nalog.ru. From 2026 it is proposed to oblige companies to post IFRS reports: the relevant bill will be considered by the State Duma of the Russian Federation (https://sozd.duma.gov.ru/bill/765582-8).
Source: Order of the Government of the Russian Federation No. 3386-r dated 22.11.2024: http://publication.pravo.gov.ru/document/0001202411250019
The limit of the social contribution tax base for 2025 has been approved
The limit for the preferential rate of social contributions for SME companies has also been changed
The Government has adopted a decree on the limit of the taxable base for social contributions from January 1, 2025. In 2024, the limit of the taxable base is RUR 2,225,000. In 2025 it will increase by 24% and will amount to RUR 2,759,000.
The base is determined for each employee on an accrual basis from the beginning of the year. Payments to an employee within the amount of the taxable base are subject to social contributions at the rate of 30% (at the general rate), payments in excess – at the rate of 15.1%.
In addition, Federal Law No. 362-FZ of October 29, 2024, changed the rules for calculating social contributions for SMEs. The threshold of payments to employees, starting from which social contributions from SMEs are reduced from 30% to 15%, will be raised from 1 to 1.5 minimum wage.
The new rules will take effect from 2025.
Sources:
Resolution of the Government of the Russian Federation of 31.10.2024 No. 1457 http://publication.pravo.gov.ru/document/0001202411020022
Federal Law of 29.10.2024 No. 362-FZ http://publication.pravo.gov.ru/document/0001202410290019