Russia Has Introduced Rules for Exemption from Disclosure for CFCs

The Russian Federation has changed the rules for operation of the controlled foreign corporations (CFCs). After such innovations, CFCs can protect themselves from data disclosure if they undertake to pay a fixed tax. The State Duma of the Russian Federation supported the respective changes, and Russian President Vladimir Putin already signed these amendments.

Now, the controlled foreign corporations can pay a fixed tax of 38,460,000 rubles in 2020 and 34,000,000 in 2021, and not disclose their reporting data to the tax authorities. If the company does not do this, it will have to submit reporting documents to the Federal Tax Service annually.

In addition, in Russia, the fines were increased for the controlled foreign corporations, which do not submit reports. The companies will be required to pay 500,000 rubles for non-disclosure or 1,000,000 rubles for denial to submit reporting documents at the request of regulatory authorities.

Law & Trust offers its services for the companies, which are classified as CFCs in Russia. We will tell you about the new rules and requirements in the Russian Federation as well as  help to adapt the company to these innovations.