Taxpayers can increase the period of notice on participation in foreign organizations

MOSCOW, January 25. The state Duma Committee on budget and taxation recommends the lower house of Parliament adopted in the second reading of a bill, perfecting the taxation of profits of controlled foreign companies and income of foreign organizations.

The second reading of the bill was introduced a number of amendments, in particular amendments to the Tax code of the Russian Federation, which involves increasing the period of notification of tax authority on involvement of the taxpayer in foreign organizations.

Under current law, a taxpayer must notify the tax authority within one month from the date of occurrence or change of a share in a foreign company. The proposed amendment increases this period three times – not later than three months from the relevant date.

“This is a very important question, because in one month even just to obtain the necessary documents for submission (to the tax authority – approx. ed.) is not physically possible. So we have companies that are absolutely conscientiously perform their duties, do not become offenders, introduced the amendment,” he said at a meeting of the Duma Committee on budget and taxes, its Chairman Andrey Makarov.

It is anticipated that the draft will be considered at the Duma plenary session on January 27.