For individuals

In 2020, there were a number of innovations in Russian tax and currency laws affecting individuals.

We are ready to help you adapt to changes and take steps for effective tax planning.

Wealthy citizens will be directly affected by changes in the field of taxation of individuals such as: introduction of an increased personal income tax rate; introduction of a tax on interest received on bank deposits in Russia; cancellation of privileges on federal loan bonds and corporate debt securities; and introduction of a lump-sum tax on income in the form of profits of controlled foreign companies. At the same time, it is important to understand that the transition to the payment of a lump-sum tax makes sense if the total profit of your controlled companies exceeds 34 million roubles. All these changes must be taken into account when structuring personal investments.

The current and expected changes will have a significant impact on obligations of individuals under tax and currency laws and will require wealthy individuals to take certain steps in planning their tax burden and meeting reporting obligations.

The tax burden of individuals may increase several times next year, depending on the composition of assets and the absence of structuring, if they maintain their current investment package.

Our consultants can help you prepare for upcoming changes, including:

  • Carry out diagnostics of assets in terms of the impact of potential changes in tax law on the tax burden of the individual;
  • Identify potential and historical risk areas and options for their management;
  • Provide recommendations on the most effective way to invest, based on the investment portfolio and personal circumstances of the individual;
  • Develop the most efficient asset ownership structure, taking into account the potential introduction of a special regime for taxing profits of CFCs;
  • Analyse the risks of non-compliance with currency law of the Russian Federation when having foreign accounts.

We advise on tax issues in Russia and abroad, and are ready to implement our proposed solutions together. You can also rely on our qualified lawyers and attorneys in all matters relating to civil, administrative, and criminal law. We are ready to represent you before government agencies, employers, and law enforcement officers on any matters. In any matters concerning related areas of expertise such as audit, valuation, management, and strategic consulting, or foreign jurisdictions, you will receive world-class service due to our partnership with one of the world’s largest audit and consulting groups.

Our experts are ready to help you with the following matters:

  • Tax advice;
  • Controlled foreign companies (CFC);
  • Tax-free winding-up and amnesty;
  • Currency law;
  • Migration law issues;
  • Support of alternative investments;
  • Copyright;
  • Employment contracts and participation in incentive schemes for managers;
  • Starting your own business;
  • Tax benefits and deductions.

Head of Tax Section