The state Duma adopted in the first reading the bill about the taxation of CFC


Moscow. December 22. The state Duma meeting on Tuesday adopted in the first reading the draft law, clarifying the procedure of taxation of controlled foreign companies (CFC).

Tax rules for controlled foreign companies came into force on 1 January 2015. The bill removes identified in practice collision regulations while minimizing tax obstacles for those forms of entrepreneurial activity, the aim of which is not the evasion of Russian taxes noted in the explanatory note to the document.

In particular, the paper clarifies the norms of the Tax code with the aim to prevent double taxation of dividends paid from the profits of the CFC.

The document allows you to determine the tax base under IFRS. When considering the document in the first reading, the tax base was determined in accordance with Chapter 25 of the tax code.

In addition, it is planned to increase the possible term of liquidation of the CFC, if the decision on liquidation is taken before 1 January 2017.

Current law provides a number of benefits for controlling persons who receive property from a CFC, provided the company goes into liquidation before January 1, 2017. A number of companies due to objective reasons do not have time to finish all necessary procedures before the established in the current legal limit, according to the authors of the bill.

In addition, specifies the procedure of recognition of the persons supervising. In particular, does not recognize controlling person, which participates in the CFC through participation in Russian public companies.

“Because of the transparency of reporting and public companies disclosure, and full payment of the tax on profits of a controlled foreign company will be at the level of a public company, and further, the recognition controlling persons of superiors is not expedient”, – the authors of the bill.

The bill was introduced in the state Duma by representatives of all factions under the title “On amendments to parts one and two of the Tax code and the law “On amendments to parts one and two of the Tax code regarding the taxation of profits of CFC and income of foreign organizations”.