01.07.2013
1. Foreign representative office in Russian Federation
2. Foreign subsidiary company in Russian Federation
3. Limited presence on the Russian Federation territory of a foreign organization
4. Forms of presence of foreign companies in Russia: a general overview/comparison
Foreign representative office in Russian Federation
The permits for the opening and operation of representative offices of foreign legal entities
Representation of foreign legal entity in Russia can be opened only with the permission of the authority.
Only the Russian Chamber of Commerce and the Central Bank of Russia perform this function on the basis of the laws of the Russian Federation.
COC (Chamber of Commerce) of Russia performs the function of the opening of representative offices of foreign companies in the Russian Federation. Permission to open a representative office of a foreign company is valid for 1, 2 or 3 years. Subsequently, the term of the permit may be extended.
After receiving permission to open a representative office in the Russian representative office of a foreign company it is need to register on the tax account.
Permit extension
The authorization may be renewed upon timely appeal of a foreign legal entity in the Russian Chamber of Commerce for 1, 2 or 3 years.
With the extension of a representative office previously issued permit for his discovery is subject to extension.
Representative office liquidation
To close the office in the Russian Federation it must be submitted to the Department for work with foreign legal entities and their representatives the following documents:
1. The decision to close the offices of the company, indicating the reason for termination of its activities.
2. A statement from the Head of representative office with the request to close it by the decision of the firm, which opened earlier this representation.
According to the documents attached certificate from the tax authorities, foundations, institutions of statistics on the deregistration of foreign representative offices of the company.
Taxation
PIT (Personal Income Tax)
- Resident (source of income - Russia and abroad)
- Non-resident (source of income - Russia)
Income Tax
- Income from sources in the Russian Federation (from its operations and other income, such as dividends paid by a foreign company - shareholder (participant) of Russian organizations; income from the sale of real estate situated in the territory of the Russian Federation proceeds from the lease or sublease of the property used on the territory of the Russian Federation, etc.)
Property Tax
- Movable and immovable property related to fixed assets
VAT (Value Added Tax)
Revenue from work / service if the place of supply of work is recognized as territory of the Russian Federation, if the work (services) are directly connected with immovable property (except for air, maritime and inland waterway vessels, as well as space objects) in the territory of the Russian Federation. These works (services), in particular, the construction, erection, construction, repair, restoration works, maintenance works.
STS (Simplified Tax System)
In accordance with paragraphs. Section 3, Article 18. 346.12 of the Tax Code, foreign organizations, as well as their branches and representative offices in the Russian Federation have not right to use the simplified tax system.
Accounting
In accordance with Part 1 of Article 6 and Article 2 of the Federal Law of 06.12.2011 N 402-FZ "On Accounting" of a foreign organization in the Russian Federation shall keep accounts.
Maintenance of accounting records of foreign missions in the territory of Russia, may be based on the rules established in the country of the foreign company, if they do not conflict with IFRS. In addition, the rules of the Federal Law "On Accounting" apply to representative offices and branches of foreign companies, unless otherwise stipulated by international treaties of the Russian Federation.
From the above it follows that the representation can maintain accounting records in accordance with the rules of the country where the foreign company or on the basis of Russian legislation. Recently, he has the right not to maintain records indicating bound reference only tax accounting. However, in practice, separated divisions of foreign companies in Russia are usual, and provide accountability to tax optimization.
For more information, including the date and the list of documents, as well as other assistance in opening a representative of your company in Russia refer to AS-AUDIT specialists.
Теги: Accounting, Income tax, PIT, Property Tax, Representative office
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