It has become known which companies will be able to do business in the newly
created Russian offshore zones on Russky Island in Primorsky Territory and
Oktyabrsky Island in Kaliningrad Region, starting from 1 January 2019.
Foreign
companies will be able to register in Russian offshore zones, provided that
such foreign companies:
- carry out business operations in
several states, including Russia;
- have invested at least RUB 50
million in Russia within 6 months after the registration date;
- were incorporated in a member state
or observer of the Financial Action Task Force (on Money Laundering) (FATF)
or the Committee of Experts on the Evaluation of Anti-Money Laundering Measures
and the Financing of Terrorism (Moneyval).
International
corporations that will use offshore zones in Russia will be granted the
following benefits:
- no profit tax on the sale of assets
and on dividends received, while the tax on dividends paid will be 5%;
- no tax on profits received from a controlled
foreign entity until 2029; and
- no currency control – companies will
be able to consummate currency transactions without restrictions.
The tax advantages
of the special administrative zones are available to international companies if
they meet the following conditions:
- the company was established before
1 January 2018;
- the foreign company’s controlling
persons became such before 2017; and
- the company submitted the necessary
documents and information to the tax inspectorate no later than 15 business
days of its registration date:
- the financial statements of the
foreign entity for previous reporting year;
- a positive auditor’s opinion;
- information regarding the controlling
persons of the international corporation.
Acsour will advise you on whether it is viable to register a company in the
offshore zones.
