With a view to move towards deoffshorization of the Russian economy and to increase the attractiveness of the Russian jurisdiction for the taxpayers, the Ministry of Finance submitted to the Government a bill amending the Tax Code and offering to the Russian residents an opportunity to pay annual tax in a fixed amount of 5 million rubles on income in the form of profits of controlled foreign companies (CFCs) without declaring such income. Any individual who voluntarily disclosed information about the CFC and promptly notified the tax authority of the transition to the new lump-sum tax regime, will have to pay the tax at a fixed rate for at least 5 years. It is assumed that the annual fixed payment of 5 million rubles will be payable for all CFCs of an individual rather than for each company separately.
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NAZALI TAX & LEGAL |