The Ministry of Finance has drafted the amendments to the Law “On Currency Regulation and Currency Control”, these amendments will enable resident legal entities to pay cash roubles to non-resident physical persons without using bank accounts in order to compensate for the VAT paid within the tax free system, according to a source familiar with the draft told to Interfax.
The prepared draft law is aimed at the elimination of inefficient provisions and gaps in the law “On Currency Regulation and Currency Control” that were revealed in the course of the analysis of law enforcement practice, in order to eliminate the conditions leading to violations in the currency sphere.
The pilot free tax project was launched on the territory of the Russian Federation in April. At first it involved some stores in Moscow, Krasnogorsk, St. Petersburg and Sochi, then eight cities-organizers of the World Cup were joined the project: Volgograd, Saransk, Rostov-on-Don, Kaliningrad, Kazan, Samara, Nizhny Novgorod , Yekaterinburg. In the future, is planned to introduce the tax free system throughout Russia.
Find more about Russian laws and consult our attorneys.
Author: Anna Dorozhkina