News: The State Duma of the Russian Federation continues to strengthen the control policy in the framework of deoffshorization

The State Duma of the Russian Federation continues to strengthen the control policy in the framework of deoffshorization

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On October 31, 2017, the Ministry of Finance of the Russian Federation approved a bill on clarifying the taxation of controlled foreign companies (CFC).

The draft of the Ministry of Finance introduces new aspects into the legislation on taxes and fees, which are designed to improve the processes of establishing and levying taxes with regard to the CFC.

Current decision of the Ministry of Finance approved amendments and additions to the following paragraphs:

• Terms and conditions for reducing the tax base for the amount of losses incurred by the company for the period from 2012 to 2015;

• Conditions of taxation of all transactions and deals of the CFC using financial assets and securities;

• Aspects of the analysis of incomes and expenditures of the CFC, which are participants of TCG (tax consolidated group);

• Terms and conditions for filing documents that certify the exemption of the CFC from the payment of income taxes within multi-level property chains in the Russian Federation.

Being approved during the meeting of the State Duma, the document introduces concepts in working with legal entities that are tax residents.

The listed aspects of the operation of the state apparatus with the CEC are planned to improve the current taxation standards in the Russian Federation.