Government support measures for foreign companies in Russia - 2023

Prerequisites for implementing support measures

Earlier in the 2023, another geopolitical instability significantly affected foreign business in Russia. In this regard, the Government of the Russian Federation has introduced additional support measures for companies that continue their activities despite the sanctions pressure. Next, consider these measures

Consider the main benefits and concessions in various areas that can be used by subsidiaries of foreign companies:

• tax breaks (including industry-specific ones);
• the ability to refund VAT in a declarative (accelerated) manner;
• exemption of individuals from the payment of personal income tax on certain types of income;
• soft loans;
• creditor restrictions on bankruptcy;
• reduction in the volume of administrative penalties;
• automatic renewal of some licenses and permits;
• amnesty for “covid” fines for companies registered in Moscow;
• legalization of "parallel" imports

Most of the measures above are only available to SMEs.

In 2023, in order to enter the SME register, a company must meet the following requirements:

• revenue for the previous financial year does not exceed RUB 2 billion;
• average number of employees is not more than 250 people.

Also, if more than 49% of the authorized capital of the LLC is owned by a foreign company, then the above requirements are established not only for the company itself, but also for the participant's company.

Only a certified auditing organization, such as Bellerage, can confirm compliance and send information about this to the IFTS.

Conclusion

The development of anti-crisis measures to support entrepreneurs, including SMEs, will continue in the operational mode and further - both the Prime Minister of the Russian Federation Mikhail Mishustin and the head of the Ministry of Economic Development of Russia Maxim Reshetnikov have repeatedly spoken about this.

The RAUIE experts are ready to answer any of your questions and analyze the possibility of using various support measures for your company.