Changes in legislation in 2021

Termination of the moratorium on initiation of bankruptcy proceedings, electronic financial statements, continuation of the “regulatory guillotine”, cancellation of the unified tax on imputed income, tax benefits.

What important legislative changes are awaiting business in 2021?


  • January 7, 2021 is the date of the end of the moratorium on the initiation of bankruptcy proceedings for the business affected by the coronavirus.
    Source: the Government Decree from October 1, 2020 No.1587
  • From January 1, 2021, the scheduled inspections of small businesses have been suspended. Other business entities can be inspected remotely throughout the year, using audio and video communication. From July 31, 2021, instead of scheduled field inspections of companies and sole entrepreneurs, a new simplified form of control can be applied - an inspection visit, the period of which cannot exceed 1 working day. The period of standard documentary and field checks will not exceed 10 working days.
    Source: the Government Decree from November 30, 2020 No. 1969
  • From July 1, 2021, a new law on state and municipal control will come into force.
    Source: the Federal Law from July 31, 2020 No. 248-FL
  • From July 2021, a ban is introduced on any control (supervisory) activity without advanced inclusion of information about it in the Unified Register of Control (Supervisory) Activities.
    Source: Information by the Prosecutor General's Office from September 23, 2020
  • Sole entrepreneurs using the simplified tax system and patent tax system will be able to apply tax holidays until 2024 under a number of conditions: a law on tax holidays has been adopted in the region; a sole entrepreneur is registered after the adoption of this law and operates in a preferential industry.
    Source: the Federal Law from July 31, 2020 No. 266-FL
  • The right to use the patent tax system was granted to photographers, teachers, cooks and farmers.
    Source: the Federal Law from February 6, 2020 No. 8-FL
  • According to the Order of the Ministry of Industry and Trade, from January 1, 2021, new forms of declaration and certificate of conformity will come into force. The Order is valid until January 1, 2027. Then another update should be expected.
    Source: Orders of the Ministry of Industry and Trade from October 28, 2020 No. 3725 and No. 3726
  • Until July 1, 2021, sole entrepreneurs having no stuff and providing services and sell goods of their own production are allowed to continue working without cash register equipment.
    Source: the Federal law from June 6, 2019 No. 129-FL
  • As part of the implementation of the “regulatory guillotine” mechanism, some regulatory legal acts containing mandatory requirements for companies are no longer in force. For example, in ecology, energy, industrial safety, labor relations, labor protection.
    Source: the Federal Law from July 31, 2020 No. 247-FL
  • The transition to a “registry model” in licensing certain types of activities begins. The model assumes the refusal to provide licenses in paper form in favor of making an entry on the grant of a license in the license register.
    Source: the Federal Law from December 27, 2019 No. 478-FL


  • Starting from the financial accounting for 2020, all organizations, including small businesses, are obliged to submit the reports in electronic form. Website of the Federal Tax Service provides an opportunity to fill out them in a personal account.
    Source: the Federal Law from November 28, 2018 No. 444-FL
  • Starting from the reporting for 2020, information on the average number of employees should be submitted once a year as a part of a new calculation of insurance premiums. Reports on the average number of employees are canceled. In Globas, the information about the average number of employees is saved.
    Source: the Federal Law from January 28, 2020 No. 5-FL
  • Starting from the financial accounting for 2021, the new Federal Accounting Standard 5/2019 "Inventories" will be applied, which is mandatory for all companies, except for budgetary organizations and micro-organizations with the right of simplified accounting. The standard has changed a lot in the accounting of materials, goods, finished products.
    Source: the Order of the Ministry of Finance from November 15, 2019 No. 180n


  • From January 10, 2021, all cash transactions in the amount of 600,000 RUB or more, postal orders in the amount of 100,000 RUB or more, lease payments from 600,000 RUB and all settlements related to real estate transactions from 3 million RUB are subject to control. The limit for controlling operations related to the execution of the state defense order was also reduced from 50 million RUB to 10 million RUB. Previously, only transactions that were not due to the economic activities of the company or sole entrepreneur were subject to control. If suspicious transactions are identified, banks will report to the Federal Service for Financial Monitoring not only about the transactions, but also about other client actions that are associated with these transactions.
    Source: the Federal Law from July 13, 2020 No. 208-FL
  • The Ministry of Finance has prepared revolutionary amendments to the Tax Code of the Russian Federation, which will expand the tax authorities' access to banking secrecy: they will be able to receive data on transactions on the accounts of banks and their clients not only upon request, as now, but within the framework of regular information exchange with the Central Bank. The Bank of Russia, in turn, will be able to receive information constituting tax secrets from the Federal Tax Service. If the amendments are adopted, already in 2021, the "exchange of secrets" will greatly facilitate the collection of information on all cash flows in the country and de facto will make it possible to control expenses and income of companies and individuals.
    Source: Draft of the Federal Law "On Amendments to Articles 86 and 102 of Part One of the Tax Code of the Russian Federation"
  • From January 1, 2021, digital currency (hereinafter “DC”) and digital financial assets (hereinafter “DFA”) will start operating in Russia. DFAs are kept by the operator of the information system in which they are issued. The rights to DFA arise when a record is made in the information system about their belonging to an organization or sole entrepreneur. The Bank of Russia will maintain a register of operators and determine the types of DFA that only qualified investors will be able to acquire. So far, Russian organizations are prohibited from accepting DC as payment for goods, works and services; at the same time, DCs are equated to property. The groundwork for the future is obvious: the innovation will sooner or later lead to the cancellation of paper currency, which will become a turning point in the fight against corruption and money laundering.
    Source: the Federal Law from July 31, 2020 No. 259-FL

In 2021, it is planned to consider important bills related to the adopted amendments to the Constitution of the Russian Federation; transfer of employees to permanent, temporary or combined remote work; application, verification and punishment for errors in working with cash register equipment and other changes.
We will continue to inform you about these and other innovations in legislation and analyze the consequences of their application. 

2020 legislative acts
  • By the Federal Law as of 25.12.2018 №480-FL the moratorium on scheduled inspections of legal entities – small business as well as sole entrepreneurs was prolonged.
  • The changes in the Russian Tax Code were made in accordance with the Federal Law №63-FL as of April 15, 2019.
    Since January 1st, 2020 mandatory declarations on transport and land taxes were canceled. Tax authorities will inform entities, which have vehicles and land plots, about the charged taxes.
    The mandatory settlements of advance payments on property tax are cancelled. Besides, the entities are given the right to choose the authority, in which they can submit the unified tax return, in case the entity has multiple objects in the same region.
    In addition, a VAT deduction is provided for the "export" of services and works. In case Russia is not recognized as the place of sale of works or services, "input" VAT can be deducted.
    The transfer of property on a free-of-charge basis to the ownership of the Russian Federation for the purposes of organization or for scientific research in Antarctica is also exempt from VAT payment.
    The property transferred to the treasury of the region, municipality or to the ownership of the Russian Federation is not the subject to VAT.
    Provisions regarding the investment tax deduction on income tax were clarified. This refers to deductions for expenditure on infrastructure.
    Since 2020, sole entrepreneurs are not be obligated to submit a preliminary declaration 4-NDFL (personal income tax). Instead of it, there are advance payments on the basis of the actual income.
  • According to the adopted amendments, the State information resource of accounting (financial) statements was organized. The Federal Tax Service (FTS of Russia) is authorized to maintain the resource.
    Beginning from the financial accounts for 2019, all companies are obliged to file accounts only in electronic form. Small business entities will file accounts in electronic form beginning from the financial accounts for 2020.
    Along with this, now the companies are not obliged to submit the accounts to the State statistics authorities.
    The accounts should be submitted to the tax authorities at the place of registration of the taxpayer no later than three months after the end of the reporting period.
    Besides, the Law defined that the Central Bank of the Russian Federation submits the annual accounts (annual balance and profit and loss account) until 15 May of the year following the reporting period.
    Interested parties can get information from the State information resource of accounting (financial) statements for a fee.
    By the Decree of the Government of the RF as of 25.06.2019 №811 since January 01st, 2020 the fee for provision of information on accounting (financial) statements in electronic format in the form of annual subscriber maintenance of the one workplace amounts to RUB 200 000. The fee is charged on request of the interested parties. Bank details for payment of fee are available on the official web-site of the FTS of Russia.
  • According to the Federal Law as of December 12th, 2019 No 375-FL, starting from January 1st, 2020 the amendments to the Law «On enforcement proceedings» came into force.
    The law contains the regulations on the зlock of access to third parties to data on overdue debts and multiple appeals on bankruptcy cases by different bankruptcy creditors and authorized bodies. . Besides, according to the amendments, the provision of information through the personal account and the creditors are obligated to notify the debtors about attraction of third parties (collectors) to debt repayment. The creditor must send the notice within 30 working days from the date of attraction of the collector. The relevant information should be placed in the Unified Register.
    The Unified Register should contain the data on creditors, collectors, numbers and dates of contracts on their attraction to debt collection as well as passport data and debtor’s tax number. At the same time, the specified data cannot be available on the open Internet.
  • • The Federal law of November 12th, 2019 No. 377-FL adopted amendments to legislative acts relating to the entry of information into the Unified State Register of Legal Entities (EGRUL), the Unified State Register of Sole Entrepreneurs (EGRIP), the Unified Federal Register of Information on the Facts of the Activities of Legal Entities (Fedresurs).
    Starting from April 1, 2020, the following information about individuals must be entered in Fedresurs: last name, name and patronymic, place of birth, country of residence, tax number (INN); and full and short name, INN and state registration number (OGRN) in relation to legal entities.
    From the same date, legal entities on their own initiative can add in Fedresurs information about the guarantee, restrictions on rights under the agreement. It is possible to request an extract of information from Fedresurs.
    From September 1st, 2020, EGRUL contains data on legal entities acting as the sole executive body. If several persons have the authority to act without a power of attorney on behalf of the company, relevant information will be given in relation to each of these individuals or legal entities, as well as information on joint or independent actions.
    When making entries on removal of legal entities from EGRUL by decision of the registering authorities, the interested parties whose rights are affected by such a decision will be able to send the relevant applications to the registering authorities. Upon receipt of applications within 3 months from the date of publication of information, decisions on removal from EGRUL cannot be taken.
    From the same date, individuals cannot be registered as sole entrepreneurs if 1 year has not expired since the court made a decision to forcibly terminate their activities or 3 years have not expired since the day they were removed by decision of the registering authority.
    From September 1, 2020, EGRIP contains data on the date and manner of termination of sole entrepreneur activity: on application, due to death, bankruptcy, removal from EGRIP and court decision.
  • The Federal Law №485-FL as of December 27th, 2019 amended the Federal Laws «On state and municipal unitary enterprises» and «On protection of competition».
    Since January 8, 2020 the fields of activity of unitary enterprises are limited. It was established that the purposes of unitary enterprises can be:
    • ensuring of the work of the Ministry of Defense and the Russian Guard (Rosguard);
    • carrying out of works in the areas of activity of natural monopolies and radioactive waste management;
    • elimination of consequences of emergency situations and prevention of threats to the normal functioning of the population;
    • use of complexes of sea ports that are strictly federal property;
    • activity outside the territory of Russia;
    • activity of cultural, art, cinema and cultural property protection institutions;
    • ensuring of the life of population in the Far North and equivalent localities.
    In all other competitive product markets, the establishment of an unitary enterprise is prohibited since January 8, 2020. Existing unitary enterprises are subject to liquidation or reorganization by decision of shareholders until January 1st, 2025.
  • According to the Article 6 of the Federal Law as of 03.08.2018 №280-FL, since January 1st, 2020 the Ministry of Agriculture of Russia maintains the Unified State Register of Organic Product Manufacturers.
    The organic products are implied by the law as ecologically friendly agricultural products, raw materials and supplies.
    The Register is maintained in electronic format with the use of corporate Automated Information system of registered and reference data (AIS NSI), the data on organic product manufacturers are obligatorily entered: name and production address; registration number and duration of the certificate of conformity; name of the certified body.
    Data contained in the Register, are publicly available on the web site of the Ministry of Agriculture and provided free of charge to all concerned legal entities and individuals.
  • Licensing of air transportation of passengers and goods has been canceled
    The provisions of the Federal law of May 4th, 2011 No. 99-FL “On Licensing of Certain Types of Activities” regarding the need to obtain licenses for carrying out air transportation of passengers and goods ceased to be in force by the Federal law of February 18th, 2020 No. 21-FL. The provisions obliging entities engaged in air transportation to obtain an operator’s license along with the air operator's certificate are also excluded from the Aviation Code of the Russian Federation.
    Since February 29th, 2020, legal entities or sole entrepreneurs have to obtain air operator's certificate from the Federal Air Transport Agency (Rosaviatsiya) to carry out commercial air transportation.
  • On March 31st, 2020, the State Duma of the RF adopted the Law, according to which the Government of the RF is vested with a right for 2020 to suspend, cancel or defer tax inspections to a later date, extend the due dates for tax payments, including on special tax regimes, as well as extend the due dates for advance payments on transport and land taxes, property tax of enterprises introduced by regional and municipal authorities.
    In addition, the Government is granted authority to extend the due dates for filing of tax returns and financial accounts, requirements for paying taxes, fees, insurance payments, fines, penalties, as well as the decision lead time to recover taxes, fines and penalties.
    The authorities of the constituent territories of the RF got the opportunity throughout the whole year 2020, beginning from January 1st, to extend the due dates for paying of unified agricultural tax, unified tax on imputed income, payments on patents, as well as payments within the simplified tax system.
  • The Federal law of June 8th, 2020 No. 168-FL provides the formation of the Unified Federal Information Register Containing Data on the Population of the Russian Federation (hereinafter “the Register”).
    The law came into force since June 8, 2020. There is a transition period up to December 31st, 2025, and the Register may not be required by the legislative acts as a single and obligatory source of data up to January 1st, 2023.
    The Register will contain the following data on citizens:: first, last and middle name; date and place of birth; gender; individual insurance account number (SNILS); individual tax number (INN); citizenship; marital status.
    The Federal Tax Service is responsible for the maintenance and data security of the Register. The Register will be based on information containing in the Federal Tax Service and other authorities.
    Data on taxes and incomes, pension, health condition and other biometric data will not be included.
    State administration bodies will have access to the Register as part of their remit. Notary offices will not have direct access.However, they will be obliged to check data upon request when notarizing.
    In case of discovering a mistake, the adopted law determines the procedure of introduction of amendment to the Register upon the application of the citizens. Removal of records from the Register is not provided.
  • The Federal law of June 8th, 2020 No. 171-FL introduced the amendments to the Arbitration Procedure Code of the Russian Federation (hereinafter “the Code”) providing the Russian legal entities and individuals under restrictive measures of foreign countries the right to transfer cases from foreign courts to the Russian ones.
  • The Federal law of June 23rd, 2020 No. 187-FL entered into force, establishing the administrative liability of self-regulating organizations (hereinafter “SRO”) in the financial market for violations in monitoring the activities of its members, the procedure and deadlines for submitting information about SROs to regulatory authorities.
  • In accordance with the Order of the President of the Russian Federation, the Ministry of Economic Development has formed a Register of socially oriented non-profit organizations receiving additional support measures.
  • Starting from September 1st, 2020 the Federal Tax Service of the Russian Federation gains a right to close down sole entrepreneurs by force. This provision is recorded by the amendments to the law №129-FL «On state registration of legal entities and sole entrepreneurs», adopted in November 2019.
    Earlier the removal of sole entrepreneurs from the Unified State Register of Sole Entrepreneurs (EGRIP) without their consent was possible only under the court decision or in cases of the right reversion or end of residence period in Russia of a foreign resident – entrepreneur.
    Now the authorities of the Federal Tax Service of the Russian Federation might declare sole entrepreneurs inactive and remove them from the register, if the following conditions are at the same time observed on the date of the arrival at a decision:
    • when 15 months passed after the patent expiration date or failure to provide accounts to the Federal Tax Service within last 15 months;
    • active arrears and tax, fee and due liabilities.
  • Two laws concerning the activities of limited liability companies were adopted. Among them are the Federal Law No. 251-FL of July 31st, 2020 «On Amending Article 94, Part 1 of the Russian Civil Code» and the Federal Law No. 252-FL of July 31st, 2020 «On amending Federal Law «On Limited Liability Companies» to the Extent of Improving the Procedure for Recording in the Unified State Register of Legal Entities Information on the Exit of a Limited Liability Company Member from Such Company». There is a connection between the Laws.
    The Law No. 251-FL specifies the stage of share transfer to the company. In the previous version of the Article 94 of the Russian Civil Code, the moment of share transfer to the company was the receipt of an application or request by the company. According to the new version - this is the date when the record on shareholder's withdrawal was made in the Unified State Register of Legal Entities (EGRUL) or the date when the company received a request to purchase a share.
    The Law No. 252-FL brings the Law «On Limited Liability Companies» into compliance with the updated Article 94 of the Russian Civil Code. Thus, the new Article 23 states that the calculation of the actual share value should be based on the financial statements for the reporting period that precedes the date of transfer to the company of the excluded member share, not the date of application filing, as it was before. At the same time, the date of share transfer to the company will be the date of entry in the EGRUL or receipt of withdrawal application by the society.
    Thus, the legislation amendments simplify the process of the shareholder's withdrawal and exempt companies from obligation to submit the documents for state registration.
  • The significant changes to the Laws «On Lotteries» and «On State regulation of activities to organize and conduct gambling, and amending certain legislative acts of the Russian Federation» were made by two Laws No. 242-FL of 20.07.2020 and No. 270-FL of 31.07.2020.
    In general, the amendments reinforce the requirements to the lottery and gambling companies.
    Thus, the lottery companies are now obligated to disclose information not only to the lottery organizers, but also to the State supervisory authorities.
    The ban on acting as a shareholder, member, beneficial owner, member of the board of directors or the supervisory board, executive board member, single executive body of the lottery and gambling companies is set for persons who have outstanding criminal records for financial crimes, crimes against the state authorities or for intentional crimes of medium gravity, serious and the gravest crimes.
    Among legal entities which cannot act as shareholders and members, persons with significant, direct or indirect influence on the decisions, single executive bodies of the lottery and gambling companies are legal entities registered in the states or territories with the preferential taxation or territories that do not disclose information on financial transactions (offshore zones) and included in the list approved by the Ministry of Finance of the Russian Federation.
  • The Federal Law No. 302-FL of July 31st, 2020 introduced amendments to the law "On credit histories".
    The amendments introduced qualified credit histories bureaus, which are authorized to calculate the total debt or payment burden of citizens.
    To improve the reliability and quality of data used to calculate the debt burden, the law provides for the exchange of information between qualified and other credit histories bureaus, as well as between credit histories bureaus and creditors.
    Significant amendments were made to the provisions on the composition of information included in the credit history. Now, the main part of the credit history of individuals should contain the following information concerning the subjects of credit history:
    • place of registration and actual place of residence;
    • phone number (including mobile);
    • e-mail addresses, if provided by subjects of credit history;
    • information on state registration of individuals as sole entrepreneurs;
    • information about the procedures for insolvency (bankruptcy) of individuals, if the arbitration court has accepted an application for recognition as insolvent (bankrupt);
    • information about illegal actions of individuals in insolvency (bankruptcy);
    • information on deliberate or fictitious bankruptcy, with the link and date on the inclusion of information in the Unified Federal Register of Bankruptcy Information.
    In addition, a new list of information has been formed regarding the obligations of borrowers, guarantors, principals and lessees.
    Thuswise, the list of transactions for which information should be sent to the credit histories bureau, as well as the list of sources for building up credit histories, has been clarified.
    The law also expands the supervisory powers of the Central Bank of the Russian Federation in relation to credit histories bureaus.
  • On November 7th, 2020, the Federal law No. 349-FL of October 27th, 2020 came into force, changing the procedure for entering information to the Unified Register of Small and Medium-sized Enterprises (hereinafter “SMEs”).
    The law provides that information on small business, that meets the relevant conditions will be entered to the register on the 10th of each month based on information available to the Federal Tax Service (hereinafter “FTS”) of the Russian Federation as of the first day of each month. Previously, the information was entered to the register once a year.

    Entrepreneurs who have not provided information to the FTS or who have ceased to meet the criteria for small businesses will be excluded from the SMEs register only once a year - on July 10th as before.
  • Amendments to the parts one and two of the Tax code of the Russian Federation and the certain legislative acts are made by the Federal Law No. 374-FL dated 23.11.2020.
    The Law provides a number of measures aimed at improving tax administration as well as clarifies some provisions on payment of taxes, excise taxes and state duties.
    Among main changes related to the legal entities are:
    • since January 1st, 2020, not only property, but also property rights transferred free of charge from a subsidiary or an individual with a share of at least 50% are put out of company’s income;
    • since November 23rd, 2020, it is established that the transport tax benefit is granted from the tax period when the payer became eligible for the benefit, not from the moment when the tax authorities learned about it;
    • power of attorney standard on reporting to the tax authorities entered into force on November 23rd, 2020. The Federal Tax Service of the Russian Federation must approve the new form and electronic format of the power of attorney and the rules for its submission to the Inspectorate;