1782 Discovery Blog: Marks & Sokolov Obtained Bank Records Revealing $42 Million Fraudulently Transferred From An International Diamond Mining Company To Shell Trading Companies Through New York Based Banks

          The U.S. offers a very powerful litigation tool for participants in foreign court proceedings to obtain bank records, documents and witness testimony from sources within the U.S., even if such evidence is...

Bruce Marks gives an interview on REN TV

September 22, 2020 Finance and elections: United States' opposition to Nord Stream-2 Bruce Marks, former republican Pennsylvania State Senator, gives interview on US's aggressive opposition to Nord Stream-2 project and the US economic benefits. The United states has...

1782 Discovery Blog: U.S. Courts Remain Spilt On Allowing §1782 Discovery For International Arbitration

          The Second Circuit has reinforced the spilt among the circuits whether 28 U.S.C. §1782 may be utilized to obtain evidence for use in private international arbitrations outside the United States.  In Hanwei...

Bruce Marks Evaluates US Supreme Court Decision on Electors to RIA News

July 8, 2020 Bruce Marks comments the Supreme Court decision where state may require presidential electors to support the winner of its popular vote and may punish or replace those who don’t, settling a disputed issue in advance of this fall’s election. As the Court...

Tom Sullivan participates in the virtual book launch webinar “Obtaining Evidence for Use in International Tribunals under 28 U.S.C. Section 1782”

June 26. 2020 https://www.youtube.com/watch?v=5WtFz6j5_os Transnational discovery is a vitally important part of international litigation. An increasingly important role has been discovery in the United States of information that can be used in international and...

Changes in the Application of Double Taxation Agreements by the Russian Federation

Expected new rules pertaining to taxation at source under Russian bilateral tax treaties could apply as early as January 2021.  There is no information yet as to whether either Russia or the US extended any proposals to each other to amend the existing tax...

Bruce Marks gives interview to RIA News on the suspension of Bolton’s book publication

June 16, 2020 Bruce Marks gives an interview to RIA News on the possibility of suspension of Trumps' ex-adviser, John Bolton, book publication. Justice Department sued Mr. Bolton past week to block the book's release and to demand that copies be retrieved. Officials...

Some advice from victims of voter fraud who won the day

June 11, 2020 By Bruce S. Marks and Mike Roman "El Nuevo Metodo de Votar."  The year was 1993.  Control of the Pennsylvania state Senate turned on a special election in Philadelphia.  Although the district was heavily Democratic, the...

1782 Discovery Blog: California Federal Court Upholds §1782 Discovery For Private Foreign Arbitration Impacting Silicon Valley

In HRC-Hainan Holding Co., LLC v. Yihan Hu, 2020 U.S. Dist. LEXIS 32125, at *11-12 (N.D. Cal. Feb. 25, 2020), the United States Court for the Northern District of California, which encompasses Silicon Valley, authorized  Chinese and Delaware registered companies...

1782 Discovery Blog: The Long Arm Of §1782 Discovery Is Used To Reach Documents Outside The U.S.

The Second Circuit in In re del Valle Ruiz, 939 F.3d 520 (2d Cir. 2019) and the  Eleventh Circuit in Sergeeva v. Tripleton Int'l Ltd., 834 F.3d 1194 (11th Cir. 2016) have held there is no per se bar to the extraterritorial application of 28 U.S.C. §1782 and that it...

Personal income tax on deposits and bonds

by | Apr 15, 2020 | Blog, M&S Updates

One of the measures related to the COVID-19 pandemic announced by President of the Russian Federation in his address to the nation made on March 25, 2020 is introduction of personal income tax in the form of interest on deposits and debt securities. This measure is introduced by Federal law dated April 1, 2020 No 102-FZ.

Income in the form of interest on deposits in the banks located within the territory of Russia received within a tax period, i.e. within a calendar year, exceeding the amount calculated as 1,000,000 rubles multiplied by the key rate of the Bank of Russia (applicable as of January 1 of the current tax period), shall be taxable at the rate of 13%.

When determining the tax base, the income received in the form of interest on deposits with annual interest rate not exceeding 1% within the whole tax period, as well as on escrow accounts, shall not be considered.

Example. Within 2021 a person had a deposit in bank A in the amount of 500,000 rubles with annual rate of 8%, in bank B in the amount of 10,000,000 rubles with annual rate of 7%, and in bank C in the amount of 5,000,000 rubles with annual rate of 1%. Let’s assume that the key rate of the Bank of Russia as of January 1, 2021 is 6%. The taxable amount will be determined as the amount of interest received by the person in 2021 exceeding 60,000 rubles, i.e. 1,000,000 multiplied by 6%. For the purposes of calculating the tax base, we shall exclude the interest on the deposit in bank C, because the interest rate there did not exceed 1%. If the person’s income on deposits in banks А and В in 2021 equals 740,000 rubles, the taxable amount will be 680,000 rubles, and the person will pay income tax in the amount of 88,400 rubles.

Also, income in the form of interest (coupon, discount) received on bonds of Russian entities has been excluded from the list of non-taxable income (See point 1 of Article 2 of Federal law No 102-FZ).

These amendments shall become effective on January 1, 2021 and be applicable to the income received from January 1, 2021 onward.