#2. Labyrinths 2020

Dear readers!

We are glad to welcome you to our summer edition of “Korpus Prava.Analytics”.

The new issue is packed with articles, as in the current situation, governments of numerous countries, including the Russian Federation, adopt a number of legislative acts that partially or completely change existing policies.

Thus, the article by lawyer Roman Moskovskikh covers principal changes proposed by the Government of the Russian Federation in terms of corporate procedures carried out by JSC and LLC. Namely, the deferral of next general meetings of LLC members and meetings of shareholders, and the decrease in the value of net assets of JSC and LLC.

In her article, Tatyana Frolova, senior lawyer at Private Wealth, tells you when to expect the introduction of the tax on interest received on bank deposits, its features, and provides examples of tax base calculations.

Another innovation was the increase in the withholding tax for dividends and interest paid to tax non-residents of the Russian Federation, as well as the revision of double taxation conventions. However, there is no need to hurry, because the new rules will become effective from January 2021. In her article, Anna Senchenko tells you how to act and what measures to take during this time.

The corporate practice also underwent certain changes. For example, the Enhanced Due Diligence (EDD) and personal identification (onboarding) procedures are now remotely available via means of video communication. See the articles of experts of the compliance department, Irina Otrokhova and Vlada Shafirova, to find out more about this issue.

I hope that this feature material will be beneficial for you and will help you find answers to numerous questions that are of concern to many now. Our specialists are always in touch and ready to respond to any comments and suggestions.

Have an enjoyable and beneficial reading!

Artem Paleev
Managing Partner
Korpus Prava

CONTENTS
Irina Otrokhova

Chief Compliance Officer

Corporate Services

Korpus Prava (Cyprus)

Under the current global circumstances, pretty much all business areas face difficulties, including financial institutions and corporate administrators. All current and potential clients are important for any company, but especially in any unstable economic conditions.

Vlada Shafirova

Onboarding Specialist

Corporate Services

Korpus Prava (Cyprus)

Due to the current global situation, it is quite difficult to schedule a meeting at the moment. What actions may be taken to ensure that the working process with new clients is not suspended, while all legal requirements are still met?

Irina Otrokhova

Chief Compliance Officer

Corporate Services

Korpus Prava (Cyprus)

Currently, all areas of life and economic activities experience difficulties with operating, including areas of corporate management and corporate reporting.

Elena Spetsiou

Corporate Administrator

Corporate Services

Korpus Prava (Cyprus)

Due to the introduction of travel restrictions and quarantines it has become virtually impossible to hold face-to-face meetings, as well as to ensure the presence of company shareholders and directors.

Roman Moskovskikh

Lawyer

Tax and Legal Practice

Korpus Prava (Russia)

In view of the spread of new virus the Government decided to introduce a number of changes into corporate procedures carried out by joint-stock companies and limited liability companies.

Tatiana Frolova

Leading Lawyer

Korpus Prava Private Wealth

In 2020, the phrase “The world will never be the same again” became really popular. And this statement has already become reality for people who keep their savings with Russian banks.

Anna Senchenko, LL. M.

Leading Lawyer

Tax and Legal Practice

Korpus Prava (Russia)

Nowadays we all live in a state of constant uncertainty, which is why it is more important than ever to separate rumors from facts, panic attacks from strategic planning, and treat everything we hear and see with a critical eye.

Irina Kocherginskaya, LL. M.

Managing Director

Tax and Legal Practice

Korpus Prava

Under the current conditions, the main restriction faced by all individuals and corporations is travel restrictions for individuals, cancellation of air service, and closure of borders.

Alexey Oskin

Deputy Director

Tax and Legal Practice

Korpus Prava (Russia)

The introduction of restrictive measures in a number of regions of the Russian Federation aimed at preventing the spread of the new virus caused numerous difficulties related to the inability of the parties to perform their obligations, disruption of events, etc.

Artem Paleev

Managing Partner

Korpus Prava

This article provides a consolidated list of the reasons for repudiation of the agreement set by the current law. This list is not exhaustive, and the possibility of applying a particular reason should be further checked in each case.

Ekaterina Sechkareva

Junior Lawyer

Tax and Legal Practice

Korpus Prava (Russia)

Under the current circumstances, proper execution of transactions between foreign counterparties has become significantly harder.

Alexey Oskin

Deputy Director

Tax and Legal Practice

Korpus Prava (Russia)

Under the current conditions, various lessee organizations face the following problem: they have to pay rent for vacant premises (offices, shops, pavilions).

Michael Oberemkov

Assistant to Lawyer

Tax and Legal Practice

Korpus Prava (Russia)

New virus is a current factor that seriously hinders economic growth and threatens the well-being of both individuals and businesses. Regardless of the measures taken by the government to give assistance to affected businesses, the current situation is fraught with losses that are unavoidable.

Svetlana Sviridenkova

Director

Audit Practice

Korpus Prava (Russia)

This article covers the most significant changes related to those economic areas that are not recognized as particularly affected, as well as some measures to support small and medium-sized businesses operating in the affected economic areas.

Yana Dimitrova

Deputy Director

Corporate Services

Korpus Prava (Hong Kong)

In early April 2020, Hong Kong announced adoption of an economic support package of HKD 137.5 billion (USD 17.6 billion) to help individuals and industries affected by the outbreak of new virus.

Milena Saakyan

Business Development Manager

Korpus Prava (Cyprus)

During the period from March 2020 to the present day, state authorities of Cyprus have taken and continue to take various measures to support the business and economy of the island during the spread of the virus.