Russia Clarifies Consequences Related to Tax Residence Change

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The Russian Ministry of Finance (MoF) recently issued a clarification highlighting the mandatory requirements that a foreign entity must fulfil to authenticate.

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Russia Clarifies Consequences Related to Tax Residence Change

  1. 1. Russia Clarifies Consequences Related to Tax Residence Change (Bristol, UK) - The Russian Ministry of Finance (MoF) recently issued a clarification highlighting the mandatory requirements that a foreign entity must fulfil to authenticate its tax residence in order to benefit from tax treaties, especially when there is a change in residence, reports Nair & Co.’s international tax team. If a foreign entity wants to benefit from tax treaty provisions, it is required to submit a Tax Residence Certificate (TRC) verifying the state where the company is a tax resident. This confirmation has to be duly certified by the concerned state’s respective authority; in case the certificate is executed in a foreign language, it has to be translated into Russian. In order to apply to claim tax treaty benefits, the foreign entity must submit their TRC before the payment date of income. The relevant provisions of law do not include provisions related to a TRC validity period, as the income of a foreign entity is not connected with any specific tax period. Lastly, if the place of residence of a foreign entity changes after filing the certificate with a Russian tax agent, it is the responsibility of the tax agent to calculate and withhold outstanding corporate income taxes on subsequent payments. For more information about doing business overseas or to learn more about our a href="http://www.nair-co.com/international-tax-compliance-services.aspx">International Tax team please contact us. Subscribe to regular International Tax Service alerts from Nair & Co. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts.
  2. 2. About Nair & Co. Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at www.nair-co.com Media Contacts: For media enquiries or to learn to more about Nair & Co., please email us at media@nair-co.com or call Yvonne Smith at +1.408.501.8867

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