A special list of offshore companies for 2024-2026

Legal Digest News
The Ministry of Finance of the Russian Federation has prepared a draft Order approving a new list of offshore zones.

If the document is officially approved and published, the list will include 40 states and territories that provide preferential tax treatment and do not provide for disclosure and presentation of information during financial transactions, for example:

  • Australia
  • countries of the European Union and others.
  • Liechtenstein
  • United Arab Emirates
  • United Kingdom
  • USA

It is expected that the relevant Order will be applied to the tax periods 2024−2026 and will be valid for:

  • exemption from taxation of profits of controlled foreign companies (CFC) in accordance with paragraph 3 of paragraph 7 of Article 25.13−1 of the Tax Code of the Russian Federation
  • adjustments to the profit of the CFC in accordance with subparagraph 3 of paragraph 1.2 of Article 25.15 of the Tax Code of the Russian Federation
  • determination of the income tax base in accordance with paragraph three of subparagraph 11 of paragraph 1 of Article 251 of the Tax Code of the Russian Federation
  • the application of income tax rates in accordance with subparagraph 1 or 1.1 of paragraph 3 of Article 284 of the Tax Code of the Russian Federation.

We remind you that companies can use a number of tax breaks (for example, on the payment of dividends by a foreign company) if the foreign organization is not registered in one of the states mentioned in the list of offshore zones, which the Ministry of Finance published back in June 2023. However, due to the growing tax burden on businesses, it was decided to approve a new List and reduce the number of countries.

For questions about the application of tax legislation, please contact Acsour experts.