Changes in tax legislation in Russia

This video discusses the changes in tax legislation in Russia, including the introduction of a list of unfriendly offshore countries, transfer pricing regulations, exclusion from the register of small and medium-sized businesses, taxation on dividends and share sales, temporary stop of double taxation agreements, source tax on services provided by foreign entities, changes in transfer pricing affiliation criteria, fines for non-submission of reports, agreement on transfer pricing with the tax office, taxation for distant employees, and personal income tax for foreign employees.

Key Insights

• 💡 The introduction of the list of unfriendly offshore countries has significant implications for transfer pricing and the treatment of deals with entities from these countries.
• 💡 The temporary stop of double taxation agreements with several countries affects the taxation on dividends, royalty, interests, and profit from international career.
• 💡 The source tax on services provided by foreign entities to Russian entities increases the tax burden on these services.
• 💡 The changes in transfer pricing affiliation criteria and the additional requirements for disclosure of information give tax authorities more control over transactions.
• 💡 The option to do an agreement on transfer pricing with the tax office provides a formalized approach and potential avoidance of disputes.
• 💡 The taxation for distant employees requires the payment of personal income tax by the employer, regardless of the employee’s tax residence.
• ⚡ 💡 The taxation for distant employees requires the payment of personal income tax by the employer, regardless of the employee’s tax residence.