Analytics Legal analytics

8
April
2015

Changes in the timelines and procedures for declaring foreign organizations and structures

Yuriy Ivanov, Head of Tax practice


Changes in the timelines and procedures for declaring foreign organizations and structures.jpgOn 6 April 2015, Russian President Vladimir Putin signed Federal Law No. 85-FZ (hereinafter the “Law”), which, in addition to changing provisions on social tax deductions on personal income tax, changes the procedure for notifying the tax authority on the presence of foreign organizations and structures.

Commencement of the notification provisions

Paragraph 3 of Article 25.14 of the Tax Code of the RF establishes the obligation of making a notification about participation in international organizations no later than one month from the date of such occurrence (percentage change) of participation in a foreign entity.

The law changed the date of entry into force of the provisions on notification from 1 April 2015 to 15 June 2015.


Clarification of the obligation to notify

The law specifies that the envisaged date for notification – 15 June 2015 – applies not only to the notification about participation in international organizations, but also to notices about the establishment of foreign structures without the creation of a legal entity.

We should recall that earlier this question was ambiguous.

Exemption from fines during the transition period

The law exempts from liability those who, prior to the signing of the Law, were obligated to submit a notification on participation in international organizations, but did not do so.

Exemption from the obligation to notify

The law frees from the obligation to notify about the presence of foreign organizations and structures, if participation in a foreign organization has been terminated or the established structure, without legal entity status, was liquidated by 14 June 2015, inclusive.

We would like to turn your attention to the fact that, an analysis of the provisions of the Tax Code of the Russian Federation and the Federal Laws dated 24.11.2014 No. 376-FZ and dated 06.04.2015 No. 85-FZ, show that not all foreign organizations and structures, utilized in international practice, are subject to formal notification requirements.

Thus, taking into account the coming into force of provisions of the Law, Russian tax residents still have time to make decisions on making disclosure of information, or changing their legal structures.



Related services

VEGAS LEX_Изменение в сроках и порядке декларирования иностранных организаций и структур_04.2015

Download file
File added 15.07.2016
Presentation .pdf (1,1 Мб)

Apply to participate

Agreement

Apply to participate

Оценка:

Agreement