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Russia has since 2015 introduced the following changes in tax legislation.
Controlled Foreign Companies
• The concept of“controlled foreign company” and “supervisor” was introduced.
• Supervisor is responsible for notifying tax authorities their participation in a foreign entity. Failure to comply with this rule will result in penalty of up to 100,000 Rubles being imposed.
• Supervisor declares and pays taxes from retained profit of controlled foreign companies (tax rates: 13% and 20%). Tax allowances are available. Tax Administration
• Any tax office can block taxpayer’s accounts if the taxpayer fails to comply with the requirements to submit documents, requirements to submit explanations and the notice to appear to a tax office.
• From January 1, 2015 the decision to suspend operations on bank accounts and e-Remittance service can be made within three years.
Value Added Tax (VAT)
• The tax authority has the right to request additional files for verification purposes, if:
(i) There are some discrepancies in transactions reported in a VAT return;
(ii) There are some discrepancies between transactions reported in a VAT return submitted by a taxpayer, and transactions reported in a VAT return submitted by some other taxpayers or a person liable for submission of the VAT returns;
(iii) There are some discrepancies between transactions reported in a VAT return submitted by a taxpayer, and transactions reported in an invoice register (special register) submitted to the tax office by an authorized person
Desk Audit
• In the course of a desk audit, the tax authority has the right to inspect premises, if: (i) Tax refund is declared in a tax return; (ii) Controversies and discrepancies resulted in underestimation or overstatement of tax liability.
E-document
• E-document flow was extended to include submission of electronic VAT returns and e-reporting to government by tax agents.
Property Tax
• All entities applying special tax regimes are liable to pay property tax.
