The state Duma adopted the law on the taxation of controlled foreign companies

© RIA Novosti / Alexander Demyanchuka in photobacteria and rubles. Archival photoThe state Duma adopted the law on the taxation of controlled foreign companies© RIA Novosti / Alexander Demyanchuka the image Bank

The state Duma adopted the law aimed at clarifying the procedure of taxation of controlled foreign companies (CFC) and the release of casino from the status of a tax agent.

The document, in particular, clarifies transfer rules for the future losses of these companies for the three years immediately preceding 2015. The total amount of the loss transferred to the future periods will be determined by netting the amounts of income (loss) before tax according to financial statements of a CFC during the three financial years preceding 2015. Moreover, this amount may be included losses from the revaluation of financial assets.

With the aim of establishing a uniform order of calculation of profit (loss) from operations with financial assets, the bill proposes universal principles of calculation of financial result from these operations. Income from disposal of financial assets will decrease on the price of acquisition or the value of financial assets according to the accounting of the beginning of 2015 if the related assets were acquired prior to the beginning of the period.

In addition, the procedure of calculation of financial indicators of the controlled foreign company that is a party to foreign of CGT (consolidated group of taxpayers). This establishes a closed list of principles of distribution of tax foreign REAG to its members, as well as eliminates the need for repeated submission of documents proving the conditions for exemption of the profits of such group from taxation in the framework of a multilevel ownership chains in Russia.

The law clarifies and peculiarities of taxation in transactions between interdependent persons. In particular, it is proposed not to apply the provisions on taxation in transactions between interdependent persons in cases of conclusion of an agreement on pricing. The procedure for the conclusion of such agreement, established by the Ministry of Finance. Provides for the accounting of income (profit, receipts) regardless of whether this leads to a decrease in the amount of tax or increase of the amount of loss, as stipulated by the pricing agreement cases. This option is allowed only if the use of symmetric adjustments.

Along with this, clarifies the exemption from taxation of CFC’s profit, which is involved in the mining projects implemented in accordance with agreements on production sharing and other or other similar agreements. The document establishes the possibility not to consider the profits of a CFC in the tax base of the controlling person in the case of the direction of this profit on the formation of obligatory reserves. This occurs if the formation of such reserves is stipulated by the legislation of the foreign state.

Also establishes a uniform procedure of taxation of natural persons, regardless of the method of disposal of property (property rights) received in the liquidation (termination) of a CFC. At the same time clarifies which functions on the territory of Russia, does not lead to the recognition of foreign entities as Russian tax residents.

Other changes

When determining the tax base for tax on profit of organizations from the implementation of the investment project in accordance with the law on the special economic zone in the Kaliningrad region, the document proposes not to take into account the subsidies received to Finance expenses associated with its implementation.

Finally, the law on customs regulation in the Russian Federation is supplemented by special provisions in connection with the Treaty on the customs code of the Eurasian economic Union, signed at Moscow on 11 April 2017.

Under these provisions, the legislative and other legal acts of the Russian Federation, governing relations in the field of customs, from the date of entry of this Treaty into force will be applied in the part not contradicting this agreement. In the case if such acts do not comply with the provisions of the contract, the customs legal relations will be governed by the regulatory legal acts of the Ministry of Finance.