Finance, Tax & Accounting

Moscow to lose 17 positions in the Global Financial Centres Index

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By Marina Romanova

1022697607Tallinn, Riga and Almaty had drown ahead Moscow to emerge as current Eastern Europe and Central Asia top financial centers, according to the latest Global Financial Centres Index (GFCI) rankings released this Monday by London-based consultancy firm Z/Yen and Long Finance.

The former capital city of the Republic of Kazakhstan scored 605 points, for the first time leaping over Moscow, which ranked 84 globally with 568 points. Russia’s second largest city, St Petersburg ranked 85 with 567 points, although losing only 3 points since March 2016.

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Russia’s National Debt to Remain Lowest in Europe

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By Marina Romanova

Russia’s share in a world’s national debt is the smallest in Europe, but its foreign-currency debt is the second high among emerging economies.

The Visual Capitalist, infographic data web site, has counted that the combine global national debt or world public government debt is amounted in 2015 to as much as US59,7 trillion. Using the IMF data of debt-to-GDP ratio by country, www.visualcapitalist.com experts found out that Russia’s share in a world debt is lowest in Europe and equal only to 0,49 percent of the world debt, while the European continent, excluding Russia, holds over 26 percent of total world debt.

India ‘s share in a world debt in 2015 was 2,06 percent, South Korea’s – 0,76 percent, Germany accounted for 4,81 percent, UK – 3,92 percent. Continue reading…

Russia’s Central Bank to accredit Hanoi based BIDV to promote comradeship with Vietnam

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By Marina Romanova

c1feff5bdbb45920cf7cbaa57d731347Russia’s central bank accredited Bank for Investment and Development of Vietnam (BIDV) to be country’s first financial representative on the Russian market, Vietnamese and Russian media reports.

“It is important not only for the bank itself but for the future cooperation between Russia and Vietnam,” TASS quote Dmitry Skobelkin, a central bank deputy governor, as saying.

Earlier in April 2016, the central bank issued the operating license for BIDV’s representative office in Russia. The joint bank is taking part with Russia’s state-run VTB bank in a pilot project aimed at arranging payments between two countries in their national currencies. In the long term it is possible for BIDV to open a branch in Russia, bank press release said.

BIDV’s press office describe Russia as one of its key markets and VTB as its main financial partner in Russia for the last 17 years. The VRB, with 50 percent from BIDV and 50 percent from VTB, of chartered capital respectively, started to operate on November 2006. It has 5 branches in Vietnam, namely in Hanoi, Ho Chi Minh, Vung Tau, Da Nang, and Nha Trang city. Continue reading…

VAT in Russia

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By Yuriy Zarya, IT Project Manager and Thomas Titsch, Director ERP
SCHNEIDER GROUP

VAT and Profit tax return in SAP

Russian legislation obligates companies to provide the VAT return in a specific format. As it undergoes
frequent changes, it adds a lot of complexity to statutory filing in Russia. SAP provides its clients with preconfigured solutions for clear VAT reporting that fully comply to Russian tax and legal requirements.
As of April 2015, the VAT return should include information on all incoming and outgoing VAT
invoices. In addition, the authorities will accept only VAT returns provided in the mandatory electronic
format. In early 2015, SAP provided a new necessary update of its ERP system (these updates are called
“notes”) that covers these latest changes to the VAT declaration form and ensures the capability to
deliver the VAT return in the XML format as requiredby the Russian Federal Tax Service (FNS). Continue reading…

Russian Accounting Aspects in ERP Implementations

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By Thomas Titsch, Director ERP
SCHNEIDER GROUP

Western companies should be aware of Russian accounting aspects when implementing ERP. In the last, the Russian understanding of enterprise planning was accountant driven and to some extent this remains. In order to understand Russian aspects in ERP implementations, you need to look at the aspects of the accounting approach.
Where do the different approaches come from? At this point, it makes sense to look back in history for a moment. In the pre-computer era, the Russians invented the concept of account correspondence. That means that the accounting entries were made into chessboard arrangements like in the picture below.

Russia Accounting Continue reading…

IFRS Reporting from SAP & 1C in Russia

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By Oleg Galiulin, Senior SAP Expert and Yuriy Zarya, IT Project Manager
SCHNEIDER GROUP

Choosing an ERP System

Currently, all international companies have to prepare their financial statements according to both International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP), and local reporting standards of the countries they work in.
In addition, the more their businesses grow, the more complex informational systems are needed. At present there are plenty of IT companies that are ready to provide self-engineered ERP solutions. The changing complexity of a company’s IT needs makes it difficult for a company to choose the ideal ERP system.

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SAP Solutions for Sales and Logistics for Russia

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By Albina Safina, Senior SAP Expert
SCHNEIDER GROUP

SAP software solutions help companies to improve the efficiency of enterprises in Russia and to respond operatively to changes in the requirements of legislation in Russia. SAP rapidly develops procedures and documents required under the new regulations. The country version of SAP for Russia provides standard statutory print documents required for different business processes: sales, receipt and return,  transportation and movements, and inventory.

Revised and Corrected VAT-invoices
In accordance with the government Decree №1137 from November 26, 2011, SAP has rapidly developed print documents for revised and corrected VAT invoices, and procedures for their registration in the system. Newly created VAT invoices are automatically reflected in the purchase/sale ledgers and in the journals of received and issued VAT invoices. Continue reading…

Legal Framework: What do Russia’s Sanctions Really Mean?

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By Helge Masannek

In March 2014, the EU and the United States introduced sanctions against certain Russian and Ukrainian persons as a reaction toward Russia’s role in the Crimea crisis. European “Regulations concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine” included economic sanctions, asset freezes and travel bans and have been implemented on March 5 (2014/119/CFSP), March 17 (2014/145/CFSP), May 12 (2014/265/CFSP) and July 12 (2014/455/ CFSP) as well as July 30 (2014/507/CFSP). As of July 31, there were 123 individuals and legal entities on the sanctions list. Continue reading…

Q&A: Certification and Import in the Russia – Kazakhstan – Belarus Customs Union

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1. I’m working with a Russian business partner who is a member of the Customs Union and they are asking me to sign extra documents. Why?

From the perspective of your Russian partner, the tax code requires that completed works and services be evidenced by signed “acts” as these are the primary documents used to record revenue and expense. Therefore, at different stages of your work, you may be asked to sign these documents simply to satisfy the requirements of the Russian tax code.

2. I’ve sold services to our Russian business partner and now I’m being asked to provide a copy of my company tax registration document and it should be apostilled. Why?

Under Russian legislation, in the absence of a double taxation avoidance treaty, Russian-sourced income is taxed at the source which means your Russian partner should withhold taxes from your payment. However, to enjoy the benefits of the tax treaty, the Russian tax office requires that you demonstrate your eligibility by providing a copy of your tax registration certificate to your client. The apostille is simply a protocol that countries follow to recognize the legitimacy of documents between different countries. Continue reading…

Import of Goods Between Affiliate Companies in the Russia – Kazakhstan – Belarus Customs Union

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By Bettina Wisthaler

While for imports between non-related companies, the invoice is usually sufficient as the main source for the calculation of the customs value. But for imports between affiliated companies, customs require additional confirmation of the value of goods. This is due to the fact that in the past, parent companies often tried to support their subsidiaries by invoicing lower values in order to save on customs duties and import VAT.

Nowadays, affiliation needs to be indicated even in the declaration of the customs value which is part of the customs declaration of goods. Additional confirmation should be provided in form of a price list stamped by the Chamber of Commerce of the exporter’s country, the export declaration and the official order confirmation. The situation becomes more complicated when the exporting company is not selling only to its subsidiary but also to other distributors in the Customs Union. Continue reading…

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