The Federal Tax Service will block accounts if it fails to provide a tax calculation for foreign legal entities

Since January 1, 2024, a new form of tax calculation of income paid to foreign legal entities and amounts of withheld taxes (CND 1151056) should be applied.

In case of failure to provide a tax calculation for payments to foreign legal entities before March 25, 2024, the company’s account may be blocked and a fine of 5% of the tax amount for each month of delay may follow.

The tax calculation shall not include reflection of income payments to a permanent representative office of a foreign legal entity if the tax agent has been notified of the recipient of the payment and it has a legal instrument confirming the registration of the recipient of income with the tax authorities.