Sevastopol Tax Service: The deadline for submitting reports for foreign business owners is approaching

Krympress reports:

The notification of controlled foreign companies (KIK) organizations must be sent to the tax authorities no later than March 20, 2025. Individuals owning a share in foreign companies until April 30, 2025 inclusive.

It should be noted that the lack of profit or operations does not exempt from the provision of notification.

We clarify that organizations and individuals who are residents of the Russian Federation must submit notifications of participation in foreign organizations (the establishment of foreign structures without forming a legal entity) in cases where:

• Participation arose in a foreign organization with a share of more than 10%;
• the share of participation in a foreign organization has changed (if the share was more than 10%before changing);
• The participation in a foreign organization was terminated if, before the cessation of participation, the share exceeded 10%;
• a foreign structure has been established;
• a foreign structure has been stopped or eliminated;
• Redomycies occurred (i.e., change The legal address of the company from one country or economic zone to another without stopping work in the original state). In this case, two notifications are submitted: on the termination of participation in a foreign organization in the territory of one state and on the beginning of participation in it in the territory of another;
• Participation in a foreign organization has been terminated if sanctions of unfriendly countries (associations of countries, organizations) are operating in relation to it or a controlling person, which lead to the introduction of the enforcement of external management over the KIC.

Violation of the deadline or submission of notifications with inaccurate information, entails a penalty of 500,000 rubles for each company.

More details with information on the procedure for submitting notifications about the CIC and confirming documents can be found in the section of the Site of the Federal Tax Service of Russia «Controlled foreign companies and control persons«.

In the past 2024, the Federal Tax Service of Russia in Sevastopol submitted 30 notifications (28 from individuals and 2 from organizations), while 9 reports — with a violation of the deadline.

Source: press service of the Federal Tax Service of Russia in Sevastopol

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