New obligation of foreign organisations registered in Russia to disclose information
On 20 April 2021, Federal Law No. 100-FZ “On Amendments to Part One and Part Two of the Tax Code of the Russian Federation” (the “Law“) was adopted. It will come into force starting from 01 January 2022. Starting from 2022 any foreign organisation, which has a representative office, a branch or just a tax registration in Russia shall provide the following information to Russian tax authorities:
- information on the shareholders, founders, beneficiaries and managers of such foreign organisation, and
- information on the participation of an individual or a public company, if the share of such direct or indirect participation in such foreign organisation exceeds 5%.
This information must be submitted to Russian tax authorities not later than 28 March of each calendar year. If a foreign organisation is registered with more than one local subdivision of Russian tax authorities, it has the right to submit the relevant information to any of such subdivisions at its own discretion.
The only exception from the above-mentioned requirement was made by the legislator for foreign organisations that provide services in electronic form in accordance with clause 3 of Article 174.2 of the Russian Tax Code.
Russian subsidiaries of foreign companies, being LLCs, JSCs or other forms are not regarded as foreign organisations within the meaning of the Russian Tax Code, the new Law does not apply to them.
We will keep you updated on any further changes to Russian tax legislation.