Foreign companies and transactions with them are very often used in tax optimization schemes. However, often the tax authorities of the Russian Federation recognize such companies as conduits, and transactions with them are made with unjustified tax benefit. In order to avoid disputes with tax authorities, it is necessary to think very carefully about the structure of transactions.
We will help to:
structure your transactions using a foreign element
analyze the tax consequences of the transaction and ways to optimize them
establish the actual recipient of the income and corresponding tax consequences
calculate the effective tax rate
International Tax Planning
We offer the following services:
Recently, the terms "tax resident of the Russian Federation" and "controlled foreign company" (CFC) have come into use by tax authorities in relation to foreign companies. These companies in some cases have to pay taxes to the budget of the Russian Federation. Therefore, the shareholder of such a company needs to be extremely careful.
We provide the following services:
checking the company for criteria of CFC and tax resident of the Russian Federation
submission of CFC notifications
minimizing the consequences of automatic information exchange
registration of a foreign company with tax authorities of the Russian Federation
CFC and Tax Residents of Russia
We all know the rule that contracts must be concluded at market prices. However, this rule is often forgotten, especially when transactions are made within the group. However in some cases, the tax authorities have the right to check the marketability of prices and to charge additional taxes in the event that they recognize that a transaction is concluded between persons at low prices.
We will help you to understand the complex issues of transfer pricing:
analysis of the transaction from the point of view of transfer pricing
recommendations on structuring the transaction from the point of view of transfer pricing
preparation of notifications to tax authorities
preparation of transfer pricing reports
In some cases, a Russian company may use special preferential tax regimes to optimize taxation.
We will help you to start using a special regime and get the appropriate status:
simplified taxation system
resident of SKOLKOVO
"Google Tax", in other words, VAT, which is payable in accordance with the provision of electronic services according to Art. 174.2 of the Tax Code.
However, this Article of the Tax Code is quite difficult to understand, in addition, it is necessary to take into account the explanations of the tax authorities in order to apply it correctly.
We will help you to understand the following issues:
is the transaction an electronic service from the point of view of the law
is your company a tax agent in terms of the law
how to formulate the subject of the contract, so that the services provided are not considered electronic services
The legal way to optimize taxation is the proper application of double taxation treaties (DTTs). However, their application has a number of limitations. Moreover, the State Duma recently ratified the OECD multilateral Convention on tax treaties (MLI), which further complicates and limits the application of DTT.
Before entering into international transactions you need to get professional advice on the following issues:
structuring the transaction taking into account the provisions of the DTT
analysis of the application of DTT in each case, taking into account the provisions of the MLI
actual recipient of income under the transaction in light of the application of DTT
When concluding a transaction with a foreigner, tax issues should be taken into account not only from the point of view of Russian law, but also taking into account legislation of the country where your partner resides. This will allow to reduce the financial losses associated with the transaction and avoid questions from the tax authorities.
We will be glad to:
provide advice in the field of VAT payment in foreign jurisdictions, namely, according to the VAT Directive of the EU
help to determine whether the transaction is B2B or B2C
help to understand whether the transaction falls under the exceptions provided by the EU Directive
determine the place of implementation of services
analyze possibility of using "reverse charge" mechanism
Special Tax Regimes in Russia