The Federal Tax Service of Russia (FTS) conducts systematic work to increase the transparency of foreign jurisdictions in order to control the completeness of tax payment in Russia.
Belize, Brazil, Liechtenstein, Monaco, the United Arab Emirates, Seychelles, Uganda, St. Kitts and Nevis, the Isle of Man, and the island of Guernsey were removed from the list of countries and territories that do not provide information exchange for tax purposes compiled by the FTS.
Additional countries have joined the exchange of country-by-country reports for transfer pricing control and financial information about individual’s bank accounts: China, Qatar, Costa Rica, Nigeria, Bermuda, and Curacao.
These efforts are taking place in the context of Russia’s accession to the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS.
The FTS publishes a list of free foreign database systems that contain important corporate disclosure data (business registers) that taxpayers can use for compliance procedures and is available here:
Thus, we all are becoming witnesses to unprecedented developments in international tax transparency, making reducing your tax burden more difficult. Are your international business structures ready for these changes and challenges? Some strategies that worked in the past will no longer be possible.
How can SCHNEIDER GROUP help?
Get in touch with us – our experts will be happy to review your corporate structure and international tax planning instruments, including, but not limited to:
• Applied or planned use of reliefs for VAT or corporate income taxes
• Intragroup services or financing agreements
• Structures with intragroup trading houses or procurement centers
We will carry out the necessary analyses, develop a target structure and draft the corresponding documents, supervise the complex restructuring process, and support you with all matters when dealing with tax authorities.