Photo: Igor Ivanko / “Kommersant”
The Ministry of Finance agreed to establish three years, from 2021 to 2024, a period of transition, allowing Russian companies to pay dividends abroad at a zero tax rate, according to the RBC.
About the intention to toughen the terms of payment of the dividend from next year, said in late March, the President of the country Vladimir Putin. According to him, the withdrawal of funds in offshore zones should be taxed at 15-20 percent.
From that moment on the instructions of the President, Moscow is reviewing the tax rate with the popular jurisdictions, e.g. Cyprus, Malta and Luxembourg. Those who do not agree may terminate the agreement for avoidance of double taxation. Probably the first such case will be Malta.
A modified version of the bill for three years, saves for the benefit of Russian and foreign companies, changed tax residency to the Russian. This firm must not be registered in the black list of countries offshore, and Russian tax authorities should know about accounts, which are credited dividends, for a period of 180 days.
We are talking about the extension of the so-called “cross-cutting” approach. It applies if the actual recipient of the funds are tax residents of Russia. Also condition benefits on dividends was made by the membership not less than half of the portfolio from which they are paid, the Russian company during the year.
Most often such a scheme is used of a joint venture, when foreign investors cooperated with Russian partners. As noted by the KPMG partner Anna Voronkova, for the most part it was transparent structure, has not used the scheme of tax evasion. The schema change, albeit delayed, will put them at a disadvantage with Russian holding companies, or forced to abandon the use of foreign legal field, which is critical for a number of investors.
The Finance Ministry indicated that the decision to postpone was taken after consultations with the business community in order to prevent a sharp increase in the tax burden.
Earlier it became known that the government intends to dramatically tighten the rules for filing tax returns, so that the penalty can apply even honest taxpayers. The reasons experts call the desire to facilitate the work of tax and to raise fees.
Video, photo All from Russia.