S.V. Razgulin

Active State Councilor of the Russian Federation 3rd class

Since 2015, Federal Law No. 376-FZ dated November 24, 2014 introduced the obligation of taxpayers, including individuals, to notify tax authorities about participation in foreign organizations and on the establishment of foreign structures without education legal entity. Moreover, Federal Law No. 85-FZ dated April 6, 2015 changed the deadlines for fulfilling this obligation in relation to previously established participation in foreign organizations (previously established structures). This interview is devoted to the procedure for notifying foreign participants of participation.

— Who should report participation in foreign organizations? Do individuals have such an obligation?
Clause 3.1 of Article 23 and Article 25.14 of the Tax Code of the Russian Federation imposes on all taxpayers who are tax residents of the Russian Federation the obligation to send notifications of participation in foreign organizations to the tax authorities.

Taxpayers who are tax residents of the Russian Federation in accordance with Articles 207, 246.2 of the Tax Code of the Russian Federation include:

• individuals who, at the time of the start of participation in a foreign organization, are actually in Russian Federation at least 183 calendar days within 12 consecutive months;
• all Russian organizations;
• foreign organizations whose place of actual management is the Russian Federation (exceptions may be established by international treaty);
• foreign organizations with a permanent location in states with which the Russian Federation has valid international treaties on taxation issues, operating in the Russian Federation through separate units and have independently recognized themselves as tax residents of the Russian Federation.

Thus, individuals who are tax residents of the Russian Federation, regardless of whether they are individual entrepreneurs or not, must send appropriate notifications.

What participation in foreign organizations must be reported to the tax authority if such participation arose before the adoption of amendments to the Tax Code of the Russian Federation and continues at the present time?
In accordance with paragraphs 1 and 4 of Article 4 of the Federal Law of November 24, 2014 No. 376-FZ, notification of previously established participation in foreign organizations is submitted as of May 15, 2015. Deadline submission of notification of such fate and - June 15, 2015.

In this case, the basis for submitting a notification is considered to be an excess of the share of participation of 10% (subclause 1 of clause 3.1 of Article 23 of the Tax Code of the Russian Federation).
Taking into account the systemic interpretation, a notification of participation in foreign organizations is subject to submission if, as of May 15, 2015, the share of such participation is more than 10%.
So, before June 16, 2015, persons recognized as tax residents of the Russian Federation as of May 15, 2015 must submit a notification about their existing participation in foreign organizations as of May 15, 2015 (if the share of such participation is more than 10%).

Is there an obligation to notify foreign unincorporated structures that were established before 2015?
Article 25.14 of the Tax Code of the Russian Federation is devoted to notification of participation in foreign organizations. The notification of participation in foreign organizations itself is the name of the document. This document also reflects information about the establishment of a foreign structure without forming a legal entity (clause 5 of Article 25.14 of the Tax Code of the Russian Federation).
Thus, before June 16, 2015, the obligation to notify the tax authorities must be fulfilled:

On established foreign structures without the formation of a legal entity, existing as of May 15, 2015;
- about control over such structures or about the actual right to income received by such structures (fund, partnership, partnership, trust, other form of collective investment or trust management), existing as of May 15, 2015.

Is notification required to be submitted to the tax authority if participation in foreign organizations is terminated?
A notification of previously established participation in a foreign organization is not submitted if the obligation to send such a notification to the tax authorities arose after participation in the foreign organization ceased (the corresponding shares, shares in the authorized capital were sold).
Consequently, a notification is not submitted if, by June 14, 2015 inclusive, participation in a foreign organization is terminated or an established foreign structure without forming a legal entity is liquidated (Part 4 of Article 4 of the Federal Law of November 24, 2014 No. 376-FZ (as amended on April 6, 2015 No. 85-FZ)).

Is it necessary to report participation in foreign organizations to the tax authority if such participation arose in December 2015 and the size of the participation share is 5%?
According to subparagraph 2 of paragraph 2 of Article 23 of the Tax Code of the Russian Federation (as amended in force until 2015), taxpayers - organizations and individual entrepreneurs were required to report to the tax authority, respectively, at the location of the organization, place of residence individual entrepreneur about all cases of participation in foreign organizations - no later than one month from the date of the beginning of such participation.
Clause 3.1. Article 23 of the Tax Code of the Russian Federation introduced a new obligation - to send notifications if the share of participation in a foreign organization exceeds 10%.
Thus, if participation in a foreign organization arose in December 2014 and the size of the participation share is less than 10%, there is no need to report or notify the tax authority about such participation.

Should the tax authority be notified of participation in foreign organizations that arose before 2015, if the share of such participation has not changed?
Since 2015, the obligation to send notifications about participation in a foreign organization has been abolished.
By Order of the Federal Tax Service of Russia dated 06/09/2011 No. ММВ-7-6/362@, Form No. S-09-2 “Notification on participation in Russian and foreign organizations” was approved, which provides fields for indicating the beginning of participation, making changes to the share participation.
The Tax Code of the Russian Federation provides new document– notification of participation in foreign organizations and special liability has been introduced for failure to provide such notification.
Based on paragraph 2 of Article 129.6 of the Tax Code of the Russian Federation, unlawful failure to submit fixed time a taxpayer submitting a notification to the tax authority about participation in foreign organizations or submitting a notification about participation in foreign organizations containing false information entails a fine in the amount of 50,000 rubles in respect of each foreign organization about which information has not been provided or in respect of which false information has been provided.
Thus, a notification of participation in foreign organizations (with a participation share of more than 10%) must be sent to the tax authorities, including if, before 2015, the organization sent to the tax authority a notice of participation in a foreign organization and a share of participation in a foreign organization for did not change during the entire period of ownership.

How to determine the date of occurrence of the basis for notification of participation in a foreign organization that arose before May 16, 2015?
In Part 4 of Article 4 of the Federal Law of November 24, 2014 No. 376-FZ (as amended on April 6, 2015 No. 85-FZ), May 15, 2015 is indicated as the date from which the monthly period for sending the notification is counted. It is this date that can be taken as the date of occurrence of the basis for submitting a notification (the date of occurrence of participation).

- What are the deadlines for sending notifications about the beginning of a new participation in foreign organizations?
Based on paragraph 3 of Article 25.14 of the Tax Code of the Russian Federation, a notification of participation in a foreign organization is submitted no later than one month from the date of occurrence (change of share) of participation in a foreign organization, which is the basis for submitting the notification.
Moreover, in the event of termination of participation in a foreign organization, the taxpayer informs the tax authority about this no later than one month from the date of termination of participation.
Deadline for sending notifications of participation in foreign companies, which occurs from May 16, is one month. Moreover, the provisions on the monthly period for sending notifications come into force on June 15, 2015 (Part 3 of Article 4 of the Federal Law of November 24, 2014 No. 376-FZ (as amended on April 6, 2015 No. 85-FZ).
That is, the acquisition of a 10% (or more) stake in a foreign company on May 16, 2015 must be reported no later than June 16.

- How long does it take to notify about the establishment of foreign structures without forming a legal entity?
Tax residents of the Russian Federation are required to notify the tax authority about the establishment of foreign structures without forming a legal entity.
At the same time, the concepts of “foreign organization” and “foreign structure without forming a legal entity” of the Tax Code of the Russian Federation are different (Article 11 of the Tax Code of the Russian Federation).
In the cases necessary, in the opinion of the legislator, the concepts of “foreign organization” and “foreign structure without the formation of a legal entity” are used, in fact, in the same meaning (mainly to indicate the possibility of recognizing a foreign organization and a foreign structure without the formation of a legal entity as a controlled foreign company - for example, paragraphs 2, 3, 6, 8, 9 of Article 25.13 of the Tax Code of the Russian Federation).
In other cases, the concepts of “foreign organization” and “foreign structure without forming a legal entity” are used separately (for example, paragraph 1 of Article 25.15 of the Tax Code of the Russian Federation), or only the concept of “foreign organization” is used (for example, paragraph 3 of Article 25.14 of the Tax Code of the Russian Federation).
The deadline for sending a notification is established by paragraph 3 of Article 25.14 of the Tax Code of the Russian Federation only in relation to participation in foreign organizations: within a month from the date of occurrence (change of share) of participation in such a foreign organization.
The period for notification of the establishment of foreign structures without the formation of a legal entity established since May 16, 2015, or of control over such structures or of the actual right to income received by such structures arising from the specified date, is not established by the Tax Code of the Russian Federation. It turns out that the notification should be sent before the tax authority makes a decision to prosecute.

- How should I fill out and send a notice of participation in foreign organizations?
Forms, formats, procedures for filling out and procedures for submitting notifications must be established by the Federal Tax Service of Russia. The notification must contain the information specified in paragraph 5 of Article 25.14 of the Tax Code of the Russian Federation. Participation in a foreign organization can be direct, indirect, mixed (the shares of direct and indirect participation are added up). If participation is realized through other persons, then to fill out the notification you will need to assign a unique participant number to each relevant foreign organization (IO), Russian organization (RO), foreign structure without forming a legal entity (IP).
In the case of indirect participation, when filling out the notification, all sequences (groups) of participation established in accordance with Article 105.2 of the Tax Code of the Russian Federation must be given, which must end with the desired foreign organization. The participation share is calculated by multiplying the participation percentages in each sequence and adding the resulting participation shares for all groups.

What happens if the taxpayer does not wait for the order to be issued or, for example, has already sent such a notification in any form?
Before the amendments were introduced, the majority of taxpayers turned out to be in violation - they did not submit a notification within the originally established deadline - until April 2. The main reason for non-submission was lack of approved form notifications.
Came into force on April 7 the federal law dated 04/06/2015 No. 85-FZ, which postponed the deadline for submitting notifications to June 15.
Thus, there is no reason to consider failure to submit notifications for the period from April 2 to April 7 as a delay. Article 3 of Federal Law No. 85-FZ dated 04/06/2015 excluded even the theoretical possibility of holding a taxpayer liable under paragraph 2 of Article 129.6 of the Tax Code of the Russian Federation for acts that should have been committed by sending notifications in the period from January 1 to April 7, 2015.
However, the absence of an approved form of a document does not in itself cancel the obligation to submit it.
It should be noted that liability for failure to comply with the form and method of submitting a notification to the Tax Code of the Russian Federation has not been established.
If the Federal Tax Service of Russia does not timely approve the form (format) of the notification of participation in foreign organizations, the taxpayer may send specified notice in writing in any form.
A taxpayer who has fulfilled the obligation to send a notice cannot be called upon to fulfill the same obligation again.

Is it necessary to send a notification about a change in the share of participation in foreign organizations if the size of the share of such participation is subsequently, for example, reduced from 30% to 25% or, conversely, increased from 10% to 30%?
The basis for submitting a notification is that the share of participation exceeds 10% (subclause 1 of clause 3.1 of Article 23 of the Tax Code of the Russian Federation).
If, after submitting a notification about participation in foreign organizations, the grounds for submitting such a notification have not changed, repeated notifications are not submitted.
It can be concluded that in relation to a notification of participation, the size of which exceeded 10%, subsequent notifications of a change in the participation share (increase or decrease), as a result of which the share does not become less than 10%, are repeated and should not be submitted.
If the share of participation in the organization was initially 5% and then increased to 10%, then a notification of participation in such a foreign organization is submitted no later than one month from the date of change in the share.

If an organization or individual recognized as tax residents of the Russian Federation controls a foreign organization that is not a tax resident of the Russian Federation, or foreign structure without forming a legal entity, such a foreign organization (structure) is recognized as a controlled foreign company (CFC) (clauses 1 and 2 of Article 25.13 of the Tax Code of the Russian Federation).

What it means to control for the purpose of recognizing a CFC is specified in Art. 25.13 Tax Code of the Russian Federation. Control includes, for example, the ability to exert a decisive influence on decisions made by a foreign organization regarding the distribution of profits received.

For example, a controlling person of a foreign organization is an organization whose share of participation in a “foreigner” is more than 25%, and such share does not provide exclusively for direct or indirect participation through public Russian organizations.

The presence of a CFC in an organization or individual obliges them to notify the tax inspectorate about such “foreigners” (clause 3, clause 3.1, article 23 of the Tax Code of the Russian Federation).

CFC notification form 2018

The controlling organization submits a notification at its location, and an individual who controls a foreign company - at his place of residence (clause 3.1 of Article 23 of the Tax Code of the Russian Federation).

The above form of notification should not be confused with the Notification of participation in foreign organizations (on the establishment of foreign structures without forming a legal entity) (form according to KND 1120411) (approved by Order of the Federal Tax Service of April 24, 2015 No. ММВ-7-14/177@).

Organizations must submit a CFC Notification to in electronic format, and individuals can choose whether to submit it electronically or on paper (Clause 4, Article 25.14 of the Tax Code of the Russian Federation).

Notification about CFC: due date

When to submit a CFC notification? Is it necessary to submit a notification about CFC annually?

A notification about a CFC must be submitted no later than March 20 of the year following the year in which the controlling person recognized income in the form of CFC profit, which was subject to personal income tax or income tax (clause 2 of Article 25.14 of the Tax Code of the Russian Federation).

Accordingly, if such income was not recognized last year, you will not have to submit a notice of CFC this year.

Procedure for filling out the CFC notification

The procedure for filling out the CFC Notification is given in Appendix No. 2

TO general requirements By filling out the Notification, the following may be included:

• filled out in one copy by hand in black or blue ink or using a computer;
• It is not allowed to correct errors using a correction or other similar means, double-sided printing on paper, binding sheets that lead to damage paper media;
• fields are filled in with the values ​​of text, numeric, and code indicators from left to right, starting from the first (left) familiarity;
• Text fields are filled in with capital printed characters;
• When printing the Notification on a printer, it is allowed that there is no framing of the acquaintances and no dashes for empty acquaintances. Signs must be printed in Courier New font with a height of 16 - 18 points.

The notice consists of title page, sheet “Information about an individual”, as well as sheets A, A1, B, B1, C, D, G1, G2.

If the information in any sheets is not related to the reporting organization or individual, these sheets are submitted but not filled out.

If you need to fill out information about several foreign organizations or structures, fill out several sheets A - D2, respectively.

The detailed procedure for filling out each sheet of the Notification is given in Appendix No. 2 to the Order of the Federal Tax Service dated December 13, 2016 No. ММВ-7-13/679@.

Notification about CFC 2018: sample filling

Let us provide for the Notification of CFC in relation to a controlled foreign company in which the direct participation of a Russian organization is 75%.

Notification of participation in a foreign organization. When to submit a notice of participation in a foreign organization? Where to submit a notification of participation in a foreign organization? Read about this in our article.

Question: The Russian citizen is the founder of the company he opened in the UK. The company does not operate in Russia. Do I need to notify the tax office about this? Or other authorities?

Answer: Yes, you need to notify the tax office about this.

What responsibilities does a controller have?

“Notification of participation in a foreign organization

Reasons for filing

Who submits a notification of participation in a foreign organization

Notification of participation in a foreign organization must be submitted by both legal entities and individuals. The basis for this is any of the following events:

establishment of a foreign structure without forming a legal entity;

participation in a foreign organization with a share of more than 10 percent;

change in the size of the participation interest in a foreign organization, even though a notification of participation has already been submitted earlier. Even if the share size changed several times during the month.

That is, controlling persons fall into this category in any case. This follows from subparagraphs and paragraph 3.1 of Article 23, subparagraph 1 of paragraph 1 of Article 25.14 of the Tax Code, letters of the Ministry of Finance dated 08/23/2016 No. 03-01-23/49321 and the Federal Tax Service dated 06/15/2016 No. ED-3-13/2683.

When to submit

When to submit a notice of participation in a foreign organization

By general rule For citizens and organizations, notification must be submitted within three months from the date on which the basis for filing arose. This date can be taken from the title documents of a foreign state. Why does an accountant need to have them already translated into Russian? And the documents themselves should be provided to him by the company’s lawyers, who will explain how to read them correctly.

There are special rules for individuals who, at the time the grounds for filing arose, were not yet tax residents of Russia, but became so at the end of the year. Such persons are required to submit notification by March 1 of the year following the year on December 31 of which they:

became tax residents of Russia,

have a stake in a foreign organization of more than 10 percent or

established a foreign structure without forming a legal entity.

If an organization (citizen) completely ceases participation in a foreign organization (structure), also inform the tax office about this. Inform the inspection no later than three months from the date of termination of participation. An exception is persons who participate in foreign organizations only through direct and (or) indirect participation in one or more Russian public companies. This follows from the provisions of paragraphs and paragraph 3 of Article 25.14 of the Tax Code.

An example of determining the deadline for submitting a notice of participation in a foreign organization (on the establishment of foreign structures without forming a legal entity)

LLC Trading Company Hermes acquired a stake in the foreign organization Limited CDС on June 25, 2018. Hermes's share in this foreign organization was 51 percent. This means that Hermes is required to submit a notice of participation in a foreign organization. The deadline for submitting notification is September 25, 2018.

On July 2, 2018, Hermes established a foreign structure without forming a legal entity (fund). This means that Hermes is obliged to notify the inspectorate about this. The deadline for submitting notification is October 2, 2018.

Where to apply

Where to submit a notice of participation in a foreign organization

Submit a notification of participation in foreign organizations to the tax office at your location (residence).

And organizations that are classified as the largest taxpayers must submit a notification at the place of their registration as the largest taxpayers.

Such rules are established by paragraphs and paragraph 4 of Article 25.14 of the Tax Code.

What form to submit?

What form should I use to submit a notification of participation in a foreign organization?

Organizations submit notifications exclusively electronically. But citizens - at their own discretion: in electronic form or on paper (paragraph and clause 4 of Article 25.14 of the Tax Code).

What to include in the notice of participation in a foreign organization

In the notification please indicate:

the date from which the basis for filing the notification arose;

share of participation in a foreign organization;

information about whether the founder (founder) of a foreign structure without forming a legal entity is the controlling person of such a structure.

With indirect participation, including through Russian organization or a foreign structure without forming a legal entity, indicate in the notification the procedure for such participation. To do this, provide information about each subsequent participant. Namely:

name of the foreign organization (structure);

registration number of a foreign organization, code as a taxpayer or their equivalents assigned to it during registration (incorporation), its address;

organizational form of a foreign structure without forming a legal entity, name and details of the document on its establishment, date of establishment (registration), registration number (other identifier);

share of participation in each subsequent organization through which you indirectly participate in a foreign organization;

name, OGRN, INN, KPP, if you carry out indirect participation through a Russian organization.

The fine is 50,000 rubles. in relation to each foreign organization, information about which was submitted with violations or was not submitted at all (clause 2 of Article 129.6 of the Tax Code).

If you submit an updated notification before the Federal Tax Service Inspectorate discovers the error and reports it, there will be no fine for unreliability (paragraph 2, paragraph 7, article 25.14 of the Tax Code, letter of the Ministry of Finance dated October 21, 2016 No. 03-12-11/2/61621) .

There will be no fine even if individual will submit a notification along with a special declaration (clause 3.1 of Article 25.14 of the Tax Code).”

“Forced recognition of a person as a controlling

When and how an organization (citizen) can be forcibly recognized as a controlling person

If you fail to comply with the obligation to submit a notification about controlled foreign companies, the inspectorate may force you to do so. This is possible when it has information that indicates that the organization (citizen) is the controlling person. Inspectors can, in particular, obtain such information through international exchange.

For compulsory demand it is provided separate procedure, which consists of the following stages:

the inspection will send a request to submit a notice of controlled companies or explanations;

the organization (citizen) sends explanations and supporting documents (if it considers that it is not the controlling person);

inspectors review explanations and supporting documents;

the inspector sends a notification to the organization (citizen) about controlled foreign companies if he has established the grounds for recognizing it as a controlling person;

Having received the notification, the organization (citizen) has the right to challenge the inspection decision in court.

And now in more detail about each stage.

If an organization (citizen) does not submit a notification about a controlled foreign organization (structure), the inspection, if there are grounds, will require this to be done. The procedure for forced recognition of a person as a controlling person also applies to cases in which an organization (citizen) filed a notification in a timely manner, but did not include information about one or more controlled foreign companies.

The tax office will send the organization (citizen) special requirement, which will indicate:

name of the organization (last name, first name, patronymic of the citizen);

the name of foreign organizations (structures) in relation to which there is information that you control them;

registration number of a foreign organization, code as a taxpayer or their equivalents assigned to it during registration (incorporation);

description of the grounds for recognizing an organization (citizen) as a controlling person of a foreign organization (structure);

the period for which a person must provide notice.

This follows from the provisions of paragraph 9 of Article 25.14 of the Tax Code.

The taxpayer has two options for fulfilling the requirement.

The first is to file a notification about controlled companies if you agree that such companies still exist. Submit the notice within the time period specified in the request. It cannot be less than 30 working days from the date of receipt of the request.

If you think that controlled companies If you don't have one, then this is the second option. In this case, you will have to prove your position. Draw up explanations for the inspectors and attach documents to them that will confirm that you do not control foreign organizations (structures). Submit explanations and documents within the deadline specified in the request. This follows from the provisions of paragraphs

> Preparation and submission of notifications on CFC

Filing a notice of participation in foreign organizations and a notice of controlled foreign companies (CFC)

In accordance with Article 25.14 of the Tax Code of the Russian Federation tax residents of the Russian Federation - INDIVIDUALS AND LEGAL ENTITIES - are required to notify the tax authority at their place place of residence or place location of the organization accordingly:

1) about yours participation in foreign organizations (on the establishment of foreign structures without forming a legal entity);
2) about controlled foreign companies, of which they are controlling persons.

That's TWO various types Notices that must be submitted (or may not be submitted subject to certain conditions discussed below) to the tax authority to the person who owns the foreign company.

Let's consider both options sequentially.

In accordance with clause 1 clause 3.1. Article 23 of the Tax Code of the Russian Federation, the taxpayer is obliged to notify the tax authority of both direct and indirect participation in foreign organizations if the share of such participation exceeds 10%. At the same time, the share of indirect participation in a foreign organization is determined in the manner established by Art. 105.2 Tax Code of the Russian Federation.

It is also necessary to notify about participation in foreign organizations if participation in them is carried out through nominees.

Example.
You are a beneficiary of a Cyprus company - You are not a director or a shareholder, you are a beneficiary whose rights to the company arise by virtue of a declaration of trust - the law nevertheless requires that you file a Notice as the person in control of the company. At the same time, “control” is understood as the right to influence when deciding on the distribution of company profits.

The obligation to notify also lies with taxpayers who have established a so-called ISBOLE - a foreign structure without forming a legal entity (this includes current British LLPs and Scottish LP partnerships). In accordance with Clause 2 of Article 11 of the Tax Code of the Russian Federation ISBOYUL means an organizational form created in accordance with the legislation of a foreign state (territory) without forming a legal entity (in particular, fund, partnership, fellowship, trust, another form of collective investment and (or) trust management), which, in accordance with its personal law, has the right to carry out activities, aimed at generating income(arrived) in the interests its participants (shareholders, principals or other persons) or other beneficiaries.

Deadline for submitting notification

In accordance with paragraph 3 of Art. 25.14 Tax Code of the Russian Federation:

Notification of participation in foreign organizations (on the establishment of foreign structures without forming a legal entity) is submitted no later than three months from the date of emergence (change of share) of participation in such a foreign organization (date of establishment of a foreign structure without forming a legal entity), which is the basis for submitting such a notification.

Procedure and form for submitting notification

Forms for notifications of participation in foreign organizations have been approved By Order of the Federal Tax Service of the Russian Federation dated April 24, 2015 No. ММВ-7-14/177@ - applied BEFORE August 12, 2019 and by Order of the Federal Tax Service of Russia dated 07/05/2019 N ММВ-7-13/338@ - applied AFTER August 12, 2019. Please note , What:

• legal entities must give notice exclusively in electronic form, only via telecommunication channels (TCS) and only in the presence of enhanced qualified electronic signature(UKEP)*
• individuals has the right to submit a notice on paper

If incomplete information, inaccuracies or errors are detected in filling out the submitted notification about CFC n The taxpayer also has the right, on the basisClause 7 of Article 25.14 of the Tax Code of the Russian Federationsubmit to the tax authorityupdated notice.
If an updated notification is submitted before the taxpayer learns that the tax authority has established the fact that it is reflected in the notification false information, taxpayer exempt from liability provided for in Article 129.6 of this Code.

What documents need to be attached?

There are NO requirements for mandatory attachment of documents to the CFC Notification. However, in one of the sheets of the Notification it is necessary to indicate information about the date of preparation of the financial statements and the date of the auditor's report.

From which we can conclude that one must be prepared in any case mandatory either in accordance with local law and financial reporting standard, or .

An AUDIT must be carried out (even if it is NOT mandatory) in the event that the Notification is submitted in relation to the fact of ownership of a foreign company with which Russia does not have an agreement on the exchange of tax information.Wherein audit report should not contain a negative opinion.

Example.
It is NOT required to audit financial statements for European jurisdictions and others, because Russia has double taxation avoidance agreements concluded with them.
A voluntary audit is REQUIRED for all offshore companies:, etc.

After preparing reports and conducting an audit and submitting a Notification, you must be prepared for the fact that Federal Tax Service employees “as part of clarifying the information stated in the Notification” will request to provide documents confirming the stated information. After receiving these requirements, the Federal Tax Service will need to provide translated copies of financial statements and the auditor’s report (there are no requirements for an apostille and notarization of the translation). As practice shows, after submitting the specified documents, the Federal Tax Service no longer receives questions.

Responsibility for untimely filing of a notice of a CFC

In accordance with Clause 1 of Article 129.6 of the Tax Code of the Russian Federation

Wrongful failure to submit as prescribed term by the controlling person to the tax authority notifications about controlled foreign companies for calendar year or submission by the controlling person to the tax authority of a notification about controlled foreign companies containing false information,

entails a penalty a fine of 100,000 rubles for each controlled foreign company, information about which is not provided or in respect of which inaccurate information is provided.

That is, if a taxpayer who has registered a foreign company with 100% participation does not send TWO notifications to the tax authority (as required by the new rules), then he will be subject to liability in the form of a fine in the amount of 150,000 rubles. (50,000 rub. + 100,000 rub.).

Cost of our services

* Depending on the complexity of the corporate structure. The indicated price includes an analysis of the ownership structure, as well as oral consultations related to CFC

The Federal Law “On Amendments to Parts One and Two of the Tax Code of the Russian Federation (regarding taxation of profits of controlled foreign companies and income of foreign organizations)” dated November 24, 2014 No. 376-FZ came into force. At the stage of its development and discussion, the law received the unofficial name “anti-offshore bill”, “de-offshorization law” or “law on controlled foreign companies (CFC)”.

According to the changes made to Tax code(Chapter 3.4, Article 25.14), taxpayers recognized as tax residents of the Russian Federation are required to notify the tax authorities:

1. About your participation in foreign organizations (if the share of such participation exceeds 10%), about the establishment of foreign structures without forming a legal entity.
   Must be submitted on time no later than 3 months from the moment of creation or change of the share participation in such an organization.
2. About controlled foreign companies of which you are the controlling person.
   Notification of controlled foreign companies must be submitted on time no later than March 20th of the year, following tax period, in which the share of the profit of a controlled foreign company is subject to accounting by the controlling person.

Thus, when creating a foreign company, a Notice of Participation is first submitted, which discloses information about the owner, the order of ownership of the company and the share of participation, and then every year, before March 20, a Notice of CFC is submitted, which reflects information about the order of ownership, and share of ownership, availability of the company’s financial statements, auditor’s report.

Example: An individual became a 100% shareholder of a company in the BVI on 02/01/2018.

1. Within 3 months from 02/01/2018, an individual must submit a Notification of participation in a foreign company in the approved format to their territorial inspection.
   • To prepare the notice, you will need the company's corporate documents.
2. If the company’s profit for 2018 was not distributed, and no decision was made on the distribution of such profit, then the profit of the controlled foreign company at the end of 2018 is taken into account by the individual on December 31, 2019.
3. Before March 20, 2020, an individual must submit a CFC Notification for 2019 for 2018 profits to his territorial inspectorate.
   To draw up the CFC Notification for 2019, you will need the following information:
   • Corporate documents of the company
   • Financial statements for the corresponding year in accordance with IFRS standards (or in accordance with approved local reporting standards), if the company does not prepare reports in accordance with Chapter 25 of the Tax Code of the Russian Federation “Income Tax”
   • Auditor's report on these statements

Our services:

• Consultations on the need to submit a notification - 8,000 rubles/hour.
• Notification of participation in a CFC (for one company) - RUB 20,000.
• Notification of termination of participation in a CFC (for one company) - RUB 20,000. If the Notice of participation in a CFC was issued through our company, then the cost is 10,000 rubles. for company.
• Notification of CFC - 25,000 rubles. for one company + 15,000 rub. for an additional year for the same company.
• Submitting a notification to the tax office (optional) - 2,000 rubles. + notarization of the power of attorney.
• Analysis of documents of a foreign company to establish the continuity of the chain of ownership, missing documents, errors in them, etc. (if necessary) - from 70,000 rub.

Latest Trends

In 2018-2019, requests are increasingly being received from the tax authorities of the city of Moscow regarding the provision of Notifications of participation in a foreign company, as well as Notifications of CFCs. But there have also been separate requests in which the tax authorities are not limited to providing only Notifications, but require the provision of CFC reporting, an audit report, and tax registers.

Tax authority in Chelyabinsk region directs newsletters CFC owners about the deadlines for submitting CFC Notifications. After submitting the CFC Notifications, the tax office requests reporting with translation and explanations. All work tax inspector according to the CFC is under control regional office Federal Tax Service of Russia by subject. The inspector is in close contact with representatives of the Federal Tax Service and the declarant regarding the submitted reports. Tax Inspectorate proposed to declare the trust agreement as a foreign structure, but after providing written explanations, she abandoned her demands.

Penalties for failure to provide notice

• In case of failure to provide a notification about a controlled foreign company or provision of false information in the notification, a fine of 100 thousand rubles is provided. (Clause 1 of Article 129 of the Tax Code).
• For failure to submit a notification of participation or provision of false information in the notification, a fine of 50 thousand rubles is provided. (Clause 2 of Article 129 of the Tax Code).