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The CFC notifications filing due in less than two months

In 2017, Russian tax residents (both legal entities and individuals) will file notifications on their controlled foreign companies (“CFCs”) for the first time. In this context, the Federal Tax Service of Russia has recently approved the form and procedure* for completing such notifications.

The notifications must be submitted by the controlling persons by 20 March 2017. Interestingly, the notifications must be filed irrespective of the size of the income derived from the CFC’s profits. To read more about the rules on CFCs, please see our previous Alerts (here and here).

A failure to file such notifications or submission of false information in a notification may lead to a fine of RUB 100,000 (approx. EUR 1,540) in relation to each CFC for which no information was filed or false information was submitted.

Given that the CFC notifications are being filed for the first time, the CMS Russia Tax Department can assist with analysing whether the rules on CFCs apply to you and also advise on how to comply with them, including the technicalities of completing the notifications and their accompanying documents.

* In Russian

Source
CMS Client Alert | Tax | February 2017
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Authors

Igor Ershov
Senior Associate