Our advice is always up-to-date with the latest amendments in tax legislation and we keep a keen eye on respective legislative initiatives.
In the last couple of years, Russian law has been dynamic in developing changes to tax legislation. One of the key developments is taxation of controlled foreign companies. Other developments concern tax monitoring, amnesty of capitals, new thin capitalisation rules and exchange of information between tax authorities in different jurisdictions.
Our team provides legal support on a broad range of tax matters in full compliance with Russian tax legislation.
Establishing an efficient defence in a dispute is an integral part of each company’s strategy. Our lawyers have significant experience in resolution of tax disputes. We help our clients make informed business decisions at any stage of the tax dispute cycle, as well as developing a tax disputes resolution strategy.
International group structures are significantly affected by the latest changes, i.e. the introduction of the new Russian de-offshorisation law and the Base Erosion and Profits Shifting (BEPS) project, and, as part of this, attempts by national and supranational legislators to develop new rules.
The de-offshorisation law which was adopted in November 2014 and effective from 1 January 2015 includes controlled foreign companies (CFC) rules; updated tax residency rules for legal entities; a “beneficial ownership” concept; and updated rules on taxation of indirect sales of immovable property located in Russia. The draft law on Country-by-Country Reporting prepared by the Ministry of Finance of Russia was recently published for public discussion.
We provide a full range of tax advisory services, including a review of structures from the perspective of the de-offshorisation law and the BEPS project. We advise on taxation of foreign investments in Russia and Russian investments abroad, structuring of asset financing and profit repatriation, as well as on various tax matters arising from mergers & acquisitions of a business with a foreign element.
Russia’s new Transfer Pricing (TP) rules came into force 1 January 2012. These amendments impose control over prices in transactions between related parties as well as other similar transactions. Whether or not these transactions are subject to a TP audit depends on various thresholds and exemptions. The taxpayers who perform “controlled transactions” have certain obligations such as notifying tax authorities and preparing TP documentation with respect to relevant transactions.
CIS London & Partners advice ranges from methodological support for TP issues to preparation of relevant TP documentation for filing with the tax authorities, including:
Performing TP diagnostics (identifying and evaluating TP risks, assessing whether transfer prices are at the arm’s length);Developing/adjusting a transfer pricing policy consistent with the new TP rules;Mitigating identified TP risks (e.g. changing the structure of operations, discussing issues with relevant parties and amending agreements);Preparing/adapting TP documentation to support the chosen TP method and prices used; conducting benchmark studies to determine the arm’s length level of prices/ profitability for controlled transactions.When forming and substantiating intra-group prices, our specialists apply a comprehensive approach on transfer pricing issues, considering the provisions of Russian tax legislation, planned amendments, law enforcement practice and international transfer pricing principles.
