Daily Tax Report: International

Russia Gazettes Law Amending Tax Procedures for CFCs

Nov. 16, 2020, 5:00 AM

The Russian Official Gazette Nov. 9 published Law No. 368-FZ, amending part one and two of the tax code, improving the tax procedure for controlled foreign companies (CFCs). The law includes measures: 1) allowing specified taxpayers to pay taxes on the fixed income of a CFC; 2) setting the annual profit threshold at 38.4 million Russian rubles (US$505,199) for tax year 2020 and at 34 million rubles (US$446,694) for tax years beginning 2021; 3) clarifying the concepts of foreign holding and sub-holding companies; 4) requiring the controlling person to submit documents confirming CFCs’ profits and losses; 5) imposing a fine...

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