We would like to inform you about a significant increase in fines for failure to submit or late submission of annual financial statements completed under Russian Accounting Standards (RAS) and (or) audit reports that will apply since January 1, 2021 to statements and reports for the year 2019 and later. We advise you to prepare for the amendments in the Code of Administrative Offences in advance!
The All-Russian Database for Accounting (Financial) Reporting (GIRBO) will be launched in May 2020. It will accumulate the annual accounting (financial) statements of all economic entities (with rare exceptions), and audit reports if the entity is subject to mandatory audit, starting with the financial statements for 2019.
According to the amended Code of Administrative Offenses of Russia, administrative fines for failure to submit or late submission of annual accounting (financial) statements and (or) audit reports to GIRBO shall be:
- 100000 to 200 000 rubles – for officials
- 1 to 1.5 million rubles – for legal entities
According to our estimates, the possibility of adoption of the amended Code of Administrative Offences during the year 2020 and its entry into force on January 1, 2021 is high.
Given the current economic situation, we are ready to provide a comprehensive solution and organize both preparation of accounting (financial) statements and the mandatory audit of the documents by our partner company.
We will be happy to answer your questions concerning the above changes in the legislation.