A draft law provides that companies should submit information regarding their membership of an international group, as well as country-specific information and other financial data. The law in question is expected to come into effect from1 January 2018, with a transitional period from 2018 to 2020 during which taxpayers will not be fined for violating this legal rule.
The Russian Finance Ministry has drawn up draft amendments to the Russian Tax Code aimed at implementing the Convention on mutual administrative assistance in tax matters. The Convention provides that international agreements will be concluded between competent authorities of contracting states, and that such agreements will determine the procedure for exchanging information for tax purposes.
For this reason, the Russian Tax Code will be supplemented with a new chapter, which will contain definitions, among others, of such concepts as an ‘international group of companies’, a ‘member of an international group of companies’, a ‘parent company of international group of companies’, and ‘country-specific information regarding an international group of companies’.
The companies will be obliged to submit additional information to the tax authorities, such as:
– a notification of their membership in international group;
– a report containing country-specific information;
– global documentation (containing information regarding the shareholder and business structure of the international group of companies);
– national documentation (with respect to controlled transactions to which either party is another member of the international group).
Moreover, the draft law establishes a procedure for the automatic exchange of financial information with foreign states, the relevant obligations of players on the financial market, and the powers of the Russian Federal Tax Service.
Acsour is closely monitoring this draft law and will inform you of anything you need to do, should the draft law be enacted.