CrimeaPRESS reports:
Current legislation obliges organizations and citizens to annually notify the tax service about foreign companies (CFCs) they control. The CFC notification is submitted regardless of the financial result obtained by the foreign company.
Persons controlling a CFC are required to submit notifications and pay taxes: on undistributed profits of a CFC at a rate of 13% — personal income tax; corporate income tax – 20%. The amount of tax depends on whether an individual or legal entity has become the controlling CFC.
Let us clarify that it is possible not to submit information based on the results of the year only if participation in the CFC is terminated before the date on which its share in the CFC’s profits is determined: upon liquidation of the company; when selling a stake in a CFC (in whole or in part, in which the participant is no longer a controlling person).
Notification of controlled foreign companies is submitted:
- taxpayers — organizations— on time no later than March 20;
- taxpayers — individuals— on time no later than May 2 (including transfer);
The form and procedure for filling out the notice of controlled foreign companies were approved by Order of the Federal Tax Service of Russia dated October 09, 2023 No. ED 7-13/721@.
Citizens, founders or owners of shares of foreign companies can submit a report on paper to the tax authority at their place of residence or send a notification through an electronic service «Taxpayer personal account for individuals».
Along with the notification, it is also necessary to submit documents confirming the existence of an exemption from taxation of CFC profits. If there is no such exemption, the controlling persons provide documents confirming the amount of profit or loss of the company. Supporting documents can also be submitted online along with the CFC notification.
It is a duty, not a right, to submit a notice of a CFC, therefore there is liability for failure to provide it.
More information on the procedure for submitting CFC notifications and supporting documents can be found in the section «Controlled foreign companies and controlling persons«
source: press service of the Federal Tax Service of Russia in Sevastopol
Crimea news | CrimeaPRESS: latest news and main events
Comments are closed.