Mandatory Notification of Controlled Transaction

We would like to remind you that companies should notify the Federal Tax Service about all controlled transactions that took place in 2020 by May 20, 2021.

Domestic transactions are considered to be controlled if the total income of these transactions is higher than 1 billion rubles. If one of the parties is not a tax resident of Russia, transactions are considered to be controlled only when the total income is higher than 60 million rubles.

Failure to submit or late submission of a notice, as well as submission of a notification with inaccurate information, entail a fine of 5,000 rubles. In addition, if the tax base is underestimated because of the application of non-market prices, the organization faces a fine of 40% of the unpaid tax, but not less than 30,000 rubles.

Experts of Emerging Markets Group will be happy to offer you their assistance in the collection of data on controlled transactions for 2020, preparation and submission of notification to the tax inspection.

Olga Vorobyeva
Head of the Legal Practice
Maria Rumiantseva
Deputy Head of the Accounting and Tax department