In order to carry out entrepreneurial activities on a regular basis in the Russian Federation, a foreign organization must register a branch, representative office or branch.
Foreign organizations are required to register with the tax authorities of the Russian Federation. The peculiarity of the tax status of foreign legal entities is that the powers of the state to collect taxes from them are regulated by international tax agreements. The current international tax agreements (on the avoidance of double taxation) determine only the rules for delineating the rights of each of the states. However, the procedure for calculating, paying tax, collecting taxes that have not been paid in time are established by the domestic norms of tax law.
Foreign organizations that are taxpayers under the legislation of the Russian Federation, as well as Russian enterprises, are required to report to the tax authorities of the Russian Federation at the place of registration and submit reports.
The only difference from the reporting of Russian organizations is the provision of an accounting report to the tax authorities of the Russian Federation - foreign representative offices are exempted from this obligation
Otherwise, foreign organizations submit to the tax authorities the same documents as Russian companies:
1.Income tax declaration
2. Reporting related to the payment of wages. A representative office of a foreign company is obliged to provide reports on insurance premiums at the place of registration of the representative office as an insured.
Foreign representative offices must submit a calculation in the 6-NDFL form and certificates in the 2-NDFL form for each employee.
In addition, information about employees is submitted to the Pension Fund on a monthly basis.
3. Other reports
- VAT. A representative office, regardless of whether it carries out entrepreneurial activities in the territory of the Russian Federation or not, is obliged to submit a VAT return.
- Property tax. If a representative office of a foreign company has on its balance sheet property that is recognized as an object of taxation, it becomes obliged to submit a declaration for this tax.
- Transport and land tax. Transport and land tax declarations are submitted only if the representative office owns a vehicle and a land plot.
- Reporting to Rosstat. If a foreign representative office is included in the sample of Rosstat, then it becomes necessary to submit those reports that Rosstat will notify about.
The accuracy and completeness of the information specified in tax declarations is confirmed by the signatures of the Representative Office head and the chief accountant of the organization or authorized representatives.
Important: tax and other reports in Russia must be submitted strictly in the form within the statutory deadlines. In case of incorrect preparation of documents or delays, foreign organizations face fines.
In order not to waste your time, nerves and money on the settlement of disputes with the tax authorities of the Russian Federation, use the services of qualified accountants and lawyers in Russia.
For 10 years of work in Russia and Asian countries, the RAUIE has accumulated experience, business connections and contact base, and has also earned a high reputation and trust among the business community. Today the RAUIE offers a wide range of solutions for entrepreneurs seeking to enter the Russian market.
If you still have questions or need advice on reporting in the Russian Federation, you can leave a request in the feedback form or contact our specialists at the contacts below:
Maxim Kuznetsov - vice-president of the RAUIE
investment@raspp.ru
WeChat: maximkuznetsov
