The government simplified tax control for international holdings

A government decree has recently come into force, that provides Russian organizations that are part of international groups of companies with the opportunity not to submit reports for their foreign partners, subject to certain conditions. The document specifies situations in which a resident of one international group may not submit reports for its non-resident. In particular, this concerns the lack of need to notify tax authorities about opening accounts or changing the details of such companies registered outside of Russia.

Among the conditions for the application of this rule, the following can be highlighted:

• more than half of the holding’s assets are located abroad;

• the resident itself is not the parent company and does not invest in the authorized capital of its foreign partners;

• other companies within the international group do not exercise control over it.

Thus, the new decree is aimed at simplifying tax control for participants in global business structures, which can contribute to increasing their activity and interaction in the international arena.