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Russian Tax Code Changes Affecting International Groups of Companies and Audits Involving Foreign Tax Authorities
New amendments to the Russian Tax Code are aimed at implementing agreements with foreign authorities on the automatic exchange of country reports and financial information for tax purposes.
The amendments establish penalties for failure to provide notice of participation in an international group of companies (50,000 rubles), as well as supporting documentation and a country report (100,000 rubles).
Also in accordance with these amendments, the Russian Tax Code will be supplemented by a new section specifically to address the implementation of Russia's international treaties on taxation and mutual administrative assistance in tax matters. Now, the norms of the Tax Code of the Russian Federation will regulate interactions between Russian and foreign authorities in tax monitoring, joint tax inspections, and information gathering under the agreements.
These amendments are introduced as part of Federal Law No. 340-FZ of 27 November 2017 "On Amending Part One of the Tax Code of the Russian Federation in connection with the implementation of the international automatic exchange of information and documentation on international groups of companies."
This law will come into force from the date of its official publication.
Translated by Alinga Consulting Group.
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