COVID-19 Further legal measures
Due to further spread of COVID-19 in Russia a number of further restrictive measures, as well as measures to support business, were introduced.
1. Digital Pass in Moscow and Moscow region
Since 15 April 2020 citizens of Moscow and Moscow region need to have a digital pass to take any means of transport and, in particular, to go to work. Such pass will be valid until 30 April 2020 without restrictions on the number of trips and route. For walking on foot the digital pass is not needed. One-day digital passes are also provided for travelling with the purpose to receive medical assistance and for other purposes (subject to restrictions associated with the spread of coronavirus). In addition to the pass, it is necessary to show a document of identity.
2. Prolongation of restrictions for visiting courts Suspension of personal visits of citizens to the courts is prolonged until 30 April 2020.
Documents shall be submitted either by mail or via Internet. Courts must resolve urgent cases. Courts are also recommended to review the cases by means of written and simplified proceedings, including those where all the parties involved asked to review the case in their absence. Moreover, courts are entitled, at their own discretion, to resolve any other case taking into consideration its circumstances and the conditions of high alert regime in a particular region.
3. Deferrals for reporting, paying taxes and social security contributions
The deadline for submitting certain tax reports (e.g., 6-NDFL) is postponed by three months in relation to all organizations and individual entrepreneurs. The deadline for submitting VAT declarations and calculation of social security contributions for the first quarter of 2020 is extended until 15 May 2020. Accounting statement in the current year must be submitted to tax authority by 6 May 2020. Only for the most affected representatives of small and medium-sized businesses, the deadlines for making a number of mandatory payments (taxes, social contributions) are extended.
4. Inspections of the authorities in 2020
From 14 April onwards until the end of 2020 only certain extraordinary inspections (i.e., in cases harm to people’s life and health is caused) may be conducted for small and medium-sized businesses. For other legal entities and individual entrepreneurs all types of extraordinary inspections may be carried out. Inspections, as a general rule, will be conducted remotely, including the use of audio or video communication.
5. Rental holidays
Rental holiday rules are established for organizations and individual entrepreneurs from the most affected sectors of economy. The deferral for rent payments is provided until 1 October 2020. The deferral amount depends on the moment of termination of high alert regime or emergency situation. The landlord is obliged to conclude an additional agreement for deferral of the rent payment within 30 days from the date of the tenant’s request. The landlord will not be allowed to establish any sort of payment for providing such deferral.
6. Deferrals and derogations for corporate procedures
In 2020 annual general meeting of shareholders in joint-stock companies and participants in limited liability companies may be held by 30 September 2020. Until 2021 absentee voting may be used for annual general meeting of shareholders irrespective of the agenda issues. If the value of the company’s net assets at the end of 2020 was lower than its corporate capital, there is no need within six months to take a decision to reduce the corporate capital up to an amount that does not exceed the value of net assets or to liquidate the company. This extension is applicable to both limited liability companies and joint stock companies.
7. Moratorium on bankruptcy
Moratorium on bankruptcy proceedings is established for the companies from those sectors of economy that are most affected by spread of coronavirus. It also applies to strategic enterprises. The moratorium is valid for a period of six months. Applications by creditors to declare a debtor bankrupt submitted during the moratorium will be returned by the court.
8. Prolongation of licenses and permits validity
From 6 April 2020 a number of licenses and other permits (the validity of which is expired or will expire within the period from 15 March until 31 December 2020) are automatically prolonged for a year. The terms for such compulsory procedures as re-certification, accreditation, re-attestation are postponed up to 12 months.
9. Guidelines for the employers
The employers in Moscow and Moscow region shall issue internal orders to determine: those employees that are not subject to remote working due to the need of their direct involvement in ensuring continuous technological and other processes that ensure the employer’s functioning;
those employees that are subject to remote working; those employees that are not working with preservation of salary payment. It is necessary to provide in electronic form the information concerning the number of employees, including the types of activities carried out and the place of work.
Contributing Advisors
