Head of Audit Department
The term for submitting a notification of controlled transactions for 2019 expires on May 20, 2020. The notification should be submitted by taxpayers who have made controlled transactions in the calendar year.
Controlled transactions are recognized as transactions between related parties, if the conditions and summational limits set by article 105.14 of the Tax Code of the Russian Federation are met.
The main criteria for interdependence include:
Let us take a closer look at the types of controlled transactions.
Transactions will be considered controlled if the amount of income for the year is more than 1 billion rubles and at least one of the conditions is met:
Transactions with related foreign parties are recognized as controlled on the general grounds established by clause 1 of article 105.14 of the Tax Code of the Russian Federation. Transactions are considered controlled if the summational criterion of 60,000,000 rubles for the year is exceeded.
Also, any transactions with off-shore companies are equated with transactions between related parties, even if there is no such interdependence actually. However, for such transactions, the summational criterion of 60,000,000 rubles for year is also applied.
Transactions may also be considered controlled for a number of other reasons.
At the request of the Federal Tax Service, the company should provide documentation on controlled transactions. The tax authorities are entitled to send such a request not earlier than June 1 of the year following the year of performance of controlled transactions (i.e., starting from June 1, 2020, documentation for 2019 may be requested).
The taxpayer is obliged to submit documentation within 30 days from the date of receiving such a request.
The documentation is drawn up in any form and contains the information listed in article 105.15 of the Tax Code of the Russian Federation, including:
To obtain an advice on controlled transactions and prepare notification and documentation for them, contact Acsour specialists.