The Federation Council approved the law on «Russian offshore»

© RIA Novosti / Vladimir Traveloperator photosangelina bills in Russia. Archival photoThe Federation Council approved the law on «Russian offshore»© RIA Novosti / Vladimir Traveloperator the image Bank

The senators on Saturday approved a package of laws that controlled by Russians offshore companies to re-register in the special administrative regions (SAR) of Russia, minimizing possible effects of sanctions and political risk by foreign States.

The law establishes features of creation and functioning of such areas on the Russian Islands in Vladivostok and Kaliningrad in October, providing an opportunity for foreign companies to change the foreign jurisdiction to the jurisdiction of the Russian Federation (domiciliation) and to become an international company. This does not require the liquidation of the company abroad, it is sufficient to remove the registration, to register in the SAR and to obtain the status of an international company.

The international status of the company is provided simultaneously with the state registration of the company in the unified state register of legal entities. To do this, the company must make commitments for investing in Russia is not less than 50 million rubles within six months from the date of state registration and also meet several other requirements.

After the change of jurisdiction from the point of view of the currency legislation of the Russian Federation preregistered company to receive the international status, recognized by the foreign entity (non-resident), from the point of view of tax law of Russia — the Russian organisation (the resident). This international company will be entitled to carry out without restrictions currency transactions and calculations provided by the legislation of the Russian Federation for non-residents, and enjoy certain tax benefits as a resident.

For the international holding company (MHC) set a zero rate of income tax on income received in the form of dividends, and the sale of shares or participation shares in the Charter capital of Russian or foreign organizations.

For income received prior to 2029, foreign persons in the form of dividends on shares of MHK, which on the date of payment are public companies, the tax rate will be 5%. In fact, foreign companies that after the change of jurisdiction will be the members of ATS, creates a tax regime worse than they have been in the offshore.

Also establish expedited procedures for enforcement of the decision of constantly operating arbitration courts on disputes within the framework of the SAR to 14 days.

The law specifies that personal yachts and other vessels not used for commercial navigation that members of ATS and registered abroad can be registered in the Russian public register of vessels only after their removal from the register of vessels of a foreign state and submission of confirmative evidence.

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