Tax residents residing in the Russian Federation should file notifications of any ownership stakes they have in foreign companies with the Tax Authority of the Russian Federation by 15 June 2015
In accordance with Federal Law No. 85-FZ of 6 April 2015 ‘On amendments to the Article 219 of the Tax Code of the Russian Federation (Regarding Taxation of the Profits of Controlled Foreign Companies and Income of Foreign Organizations)’, (hereinafter referred to as the ‘Law’), tax residents residing in the Russian Federation (both legal and natural persons) should file notifications of any ownership stakes they have in foreign companies (if the date they acquired their ownership was before 2015) with the Tax Authority of the Russian Federation by 15 June 2015 for cases in which the ownership stake exceeds 10%.
It is also necessary to report the establishment of any unincorporated foreign structures, the control of such structures, and rights to the income derived from these structures (if the income is distributed).
The penalty for failure to file a notification is 50,000 rubles for each foreign organization for which information is not submitted or for which the information submitted is incorrect.
Please note that no format for the notification has been provided by statute, but the required disclosures are listed in Federal Law No. 376-FZ.
Initially, the deadline for filing the notification was 1 April 2015, but later it was changed to 15 June 2015.
KPMG can assist in collecting information, filling out the notifications on ownership in foreign companies, as well as submitting them to the tax authorities.
Should you have any questions, please feel free to contact us.