Tax registration of foreign companies in Russia will be carried out according to new rules
In 2019 the order of tax registration of foreign companies that functioned for a long time became void due to new Order of the Ministry of Finance of Russia No. 293n of 28 December 2018 coming into force.
The following changes can be pointed out among the most significant ones:
- The requirements for copies of documents made abroad have been changed.
Before, in order to provide the necessary documents to Russian tax authorities, it was possible to certify a copy of a document in a foreign notary office, legalise it (if necessary) and translate into Russian.
Now there is no such a possibility – either the original foreign document with its translation into Russian or a copy of the translation bound with the original document certified by a Russian notary is provided to a tax authority. A copy of the document certified by a foreign notary will not be accepted.
We should note that these requirements do not apply to registration of foreign companies through branches or representative offices, because there is a special accreditation order established for them according to which an authorized tax authority register them automatically.
- It is allowed to establish a separate subdivision (which is not a branch or a representative office) in the Russian Federation on the basis of a Resolution of the Branch of the foreign company.
It is important to note that also the said branch has to be located abroad.
In addition, along with the Resolution of the Branch, tax registration of such a Russian separate subdivision requires also the Resolution of the foreign company on establishment of this Branch.
- Now it is possible not to provide a document confirming the taxpayer status and indicating the taxpayer’s code (or its lack) in relation to foreign companies that are going to open accounts (deposits) with Russian banks as well as those operating through separate subdivisions.
The only stipulation is that information about availability (lack) of the tax number must be included in the extract from the register of foreign legal entities of the country of origin.
- The duty to perform repeated tax registration when opening an account with a bank which is located not in the place of primary registration of the foreign company has been abolished.
Before, for example, if a foreign company had an account with a Moscow bank and accordingly was registered with a Moscow tax authority, it had to be registered again when opening an additional account with a bank located in Kaliningrad.
Now only one-time tax registration is enough – at the place of registration of the bank with which the first account was opened.
- The list of the documents required for registration of a foreign company due to opening of its account with a Russian bank has been reduced.
It is enough to provide:
– Application of 11БС-учет form,
– extract from the register of foreign legal entities of the country of origin,
– certificate of assignment of a tax number if there is no information about it in the extract.
- In case of reorganization of a foreign company as a result of which its activity in the country of origin is terminated, it is also necessary to deregister its separate subdivision (to initiate termination of accreditation in case of a branch or a representative office).
Afterwards a legal successor of a foreign company has the right to be registered again (undergo the procedure for accreditation) with a Russian tax authority.
In general, it can be said that the new order significantly simplifies the tax registration procedure for foreign companies.