The Russian Tax Authority issued an official letter which clarifies tax resident status of Russian individuals in the frame of their obligations arising from the Law on Controlled Foreign Companies (CFC) that entered into force on 1 January 2015.
Russian tax residents can be treated as such even if they did not stay within the territory of the Russian Federation less than 183 days during 12 consequent months, despite the fact that it is contradictory to the definition stated in the Tax Code of Russia, and still have to fulfill mandatory obligations to declare their participation in foreign companies
The law is aimed to reduce the capital outflow from Russia and stop the usage of offshore tax evasion schemes. According to the law, Russian tax residents are required to declare and confirm their offshore profits exceeding RUB 50 million for 2015, RUB 30 million for 2016 and RUB 10 million after 2017.
Contact:
Yuliya Shibukova
Relationship Manager, Global Securities Services Russia
Tel. +7 495 258-7258, ext.3455
Yuliya.Shibukova@unicredit.ru