Tax calculations on the amounts of income paid to foreign organizations must be submitted using a new form

CrimeaPRESS reports:

The Federal Tax Service of Russia for the Republic of Crimea reminds that in accordance with changes in current legislation, with any payment of income to a foreign organization, both taxable and non-taxable transactions in monetary and non-monetary form in the form of offset, capitalization of interest, etc., an obligation arises to submit a tax calculation of the amounts income paid to foreign organizations and taxes withheld under KND 1151056.

The tax calculation for 2023 is submitted according to the deadline of 03/25/2024 using a new form (sections, income codes have been added) and the rules established by Order of the Federal Tax Service of Russia dated 09/26/2023 No. ED-7-3/675@):

• filled in with a cumulative total taking into account previous reporting periods;
• recalculation of the tax amount into Russian currency from 01/01/2023 is carried out at the rate on the date of payment of income;
• non-taxable payments for goods are filled in with the total amount (section 5);
• other payments are detailed;
• Banking control records are maintained.

In addition, the updated Tax calculation must contain all the primary data, and not just the adjusted indicators (clause 6 of Article 81 of the Tax Code of the Russian Federation).

Moreover, from 01/01/2024, Federal Law dated 07/31/2023 No. 389-FZ, in case of failure to submit a Tax Calculation, provides for:

• prosecution in the form of a fine of 5-30% of the unpaid tax amount (clause 1 of Article 119 of the Tax Code of the Russian Federation);
• the possibility of blocking a current account (clause 3.2 of Article 76 of the Tax Code of the Russian Federation).

Please note that on August 8, 2023, Decree of the President of the Russian Federation No. 585 “On the suspension by the Russian Federation of certain provisions of international treaties on taxation issues” came into force regarding the application of reduced income tax rates when paying to residents of 38 countries.

The Federal Tax Service of Russia for the Republic of Crimea strongly recommends conducting an analysis of the international transactions of your business, updating all indicators for filling out the Tax calculation or the Organization’s Income Tax Declaration, taking into account the timing of the formation of accounts payable and the presence of decisions on the use of retained earnings.

Details can be clarified in letters from the Federal Tax Service of Russia:

• dated 09/04/2023 No. КВ -4-3-11220
• dated November 14, 2023 No. ШУ-4-13/14369
• dated November 29, 2023 No. ШУ-4-3/14936

Questions can be addressed to any tax authority via Federal Tax Service website Russia, by calling the inspection hotlines or the Unified Contact Center of the Federal Tax Service of Russia 8-800-222-22-22.

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