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Tax News Russia: Offshore structures

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Fight with offshore structures

Within the initiative of fight against offshore structures 18.03.2014 Ministry of Finance of the Russian Federation published the law which enters the rules of the controlled foreign companies. The law establishes the duty of the Russian taxpayers to notify tax authorities on the participation in the controlled foreign companies; the duty on profit tax payment on foreign companies without legal address in Russia, but with the actual management of Russian companies; the opportunity to collect profit tax from sales of firms which are engaged in real estate in offshore zones. It is supposed that the law will come into force 01.01.2015.
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