In early 2015, Russia’s new Deoffshorisation Law came into force via amendments to the Russian Tax Code. Individuals and companies classified as Russian tax residents already have an obligation to file the Foreign Ownership Notification form under the new law.
Controlled Foreign Companies (CFC): The law establishes a mechanism for Russia to tax the income of CFCs where such companies do not distribute their income to the benefit of Russian controlling entities. As per the law adopted, the definition of a CFC refers to companies which are controlled by individuals or legal entities that are Russian tax residents.
Beneficial ownership: The beneficial owner according to the law is a person who has an actual right to income or authority to dispose the income in question. If deemed to be a tax resident of Russia, foreign companies directly or indirectly controlled by Russian beneficial owners (individuals or companies) will be subject to tax on profits in Russia.
Tax residency: The law extends the principle of effective management and control to foreign entities such that if it is determined that a foreign entity is effectively managed and controlled from Russia, it will become subject to Russian corporate income tax.
Real estate rich: Russian capital gains tax will apply to the disposal of shares in foreign companies if more than a half of the value of such shares is attributed to real estate in Russia.
Please fill out the form below and we will respond as soon as we can.
Job enquiries made using this form are not considered. Click here for vacancies.
* indicates mandatory input fields
Our services can help companies of all sizes with HR and payroll, accounting and tax, corporate secretarial – whether a company wants to globalise, or whether they need support to streamline existing operations.
Working closely with the world’s leading tax advisors, accountancy firms and law firms, TMF Group is the partner of choice for capital markets activities.
Our specialist private client teams create and administer services for ultra-high net worth clients that will provide for extended families, manage multiple and complex cross-border assets, navigate tax and regulatory issues and plan for estate and business succession.
TMF QuickDocs is an online service which retrieves corporate documents from public registries around the world.
Get in touch with us below