- Sputnik International
World
Get the latest news from around the world, live coverage, off-beat stories, features and analysis.

Putin Signs Law to Crack Down on Offshore Tax Shelters

© Sputnik / Alexei Druzhinin / Go to the mediabankVladimir Putin signs a law that limits offshore tax sheltering. The law will force Russian owners of foreign-based companies to inform the Federal Tax Service of their profits.
Vladimir Putin signs a law that limits offshore tax sheltering. The law will force Russian owners of foreign-based companies to inform the Federal Tax Service of their profits. - Sputnik International
Subscribe
Vladimir Putin signs a law that limits offshore tax sheltering. The law will force Russian owners of foreign-based companies to inform the Federal Tax Service of their profits.

MOSCOW, November 25 (Sputnik) — Russian President Vladimir Putin has signed a law to limit offshore tax sheltering, according to a publication appearing Tuesday on the official database of Russian laws and legal documents.

The Russian government has announced its support for a bill aimed at increasing the collection of taxes from individuals and companies which use offshore banking to avoid paying taxes in Russia. - Sputnik International
Russian Government Approves Bill to Rein in Offshore Companies
The new law introduces an amendment to the Russian Tax Code that will force Russian owners of foreign-based companies to inform the Federal Tax Service of their profits. This modification introduces the notions of a "controlled foreign company" and a "controlling entity."

In 2013, the Russian Accounts Chamber released a groundbreaking report uncovering $329 billion in illegal tax sheltering by Russian entities in foreign low-tax zones, dubbed tax havens. - Sputnik International
Russia
Tax Haven Loss to Russia Tops $800Bln Over 20 Years
The controlling entity will be obliged to submit a tax declaration, a financial statement on the controlled foreign company and audit results. Taxes will be calculated with regard to the offshore company's income.

A separate provision in the "deoffshorization" law lists criteria that can classify a foreign company as a Russian tax resident. According to the Russian deputy finance minister, this could happen if a company's operational and strategic decisions are taken in Russia or if a company's income comes predominantly from operations in Russia.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала