Please be reminded of the need for legal entities and individuals to submit Notifications of controlled foreign companies for 2021.
Notification of controlled foreign companies (hereinafter – CFC) should be submitted by those legal entities and individuals who are recognized as controlling persons of such foreign companies, namely, they meet one of the following criteria:
The deadline for submitting the notification for 2021 (that is, based on the results of the profit of the 2020 financial period of the CFC):
An individual can submit a document both electronically and in paper form to the tax inspectorate at the place of residence. Organizations are required to submit the document only in electronic form.
The following should be attached to the notification:
In addition to the above documents, organizations have to attach a profit tax declaration, and individuals have to pay income tax and submit a tax declaration on form 3-NDFL. The deadline for submitting the tax return for 2021 is the same as for the notification – April 30, 2022.
Please note that individuals have the right to switch to the income tax payment regime from the fixed profit of CFC, the amount of which is equal to:
Therefore, from the specified amount of profits, an individual will pay tax on all CFC in the amount of 5,000,000 rubles.
For failure to submit a CFC notification within the prescribed time limit or for a submission of a notification containing inaccurate information, liability is provided in the form of the imposition of a fine of 500,000 rubles for each CFC in respect of which such violations were committed.
In the matters of the preparation and the procedure of submission of a CFC notification to the tax authorities, please contact Acsour specialists.