Date:
25.08.2025
Reading time:
5 minutes
Author:
Daniil Kadyrov
Managing Partner
Hong Kong has launched three new Tax Portals
Date:
25.08.2025
Reading time:
5 minutes
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The Automated Simplified Taxation System (ASTR), established under Federal Law No. 17-FZ, represents a modernized tax regime designed to eliminate traditional accounting burdens and automate fiscal administration for small businesses across Russia. Following its nationwide rollout, this regime allows micro-enterprises, sole proprietors, and small corporate subsidiaries to execute real-time tax calculations and payments through direct digital data integration between the Federal Tax Service (FTS) and authorized partner banks. For international investors, entrepreneurs, and corporate executives entering the Russian market, leveraging the ASTR framework offers unprecedented administrative efficiency, reduced compliance risks, and predictable fiscal planning, provided strict digital transparency and banking compliance protocols are maintained.
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Bad debt is recognized as debt for which there are no legal or factual opportunities for collection. Such debt is excluded from accounting records and, subject to established conditions, is reflected in the tax base as an expense (in the case of accounts receivable) or income (in the case of accounts payable).
Russian Tax Liabilities, Audit Risks, and Criminal Exposure for Foreign-Owned Companies and Directors
Foreign corporations, international investors, and non-resident executives operating subsidiaries or commercial branches in the Russian Federation face heightened scrutiny from the Federal Tax Service (FTS) and enforcement authorities. Russia’s tax administration relies on automated digital monitoring systems—including cross-border transaction tracking and unified tax accounting—making compliance failures costly. Unpaid tax liabilities exceeding RUB 18.75 million trigger mandatory criminal referrals under Article 199 of the Russian Criminal Code, exposing company executives and beneficial owners to personal liability, asset freezing, and criminal prosecution.
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