We would like to remind you that from May 20, 2021, in accordance with changes to clause 3.2. article 23 of the Tax Code of the Russian Federation by Federal Law No. 100-FZ of, all foreign companies are required to provide information about participants to the tax authorities. At the same time foreign structures without a legal entity, such as, e.g. foundations, partnerships, or trusts should also provide information about founders, beneficiaries and managers. However, foreign organizations registered with the tax authorities in connection with the provision of services in electronic form are exempted from this obligation.
Previously, the obligation to provide such information was established only for foreign organizations that have real estate by right of ownership, which is recognized as an object of taxation on the property of organizations.
Information must be provided annually, but no later than March 28. Details about participants are submitted in electronic form approved by the Federal Tax Service of Russia, as of December 31 of the year preceding the year of providing information. Foreign companies are required to disclose information about all participants whose participation exceeds 5%.
We would like to pay attention to the fact that there is a fine of 50,000 rubles for violation of the procedure for reporting information about participants of foreign organizations. Whereas previously the amount of the fine was tied to the amount of tax on the property of organizations.
Emerging Markets Group experts will be happy to assist with the preparation of the foreign organization's member notification form.