For individuals who are tax residents of the Russian Federation, the following obligations must be fulfilled by 2 May 2023:
- declare income received in 2022 that was not withheld by tax agents in the Russian Federation; to do this, a 3-NDFL tax return must be filed;
- report to the tax authorities on their foreign companies and structures without a legal entity through the submission of a Controlled Foreign Companies (CFC) Notification;
- attach to the CFC Notification prepared financial statements for the 2021 financial year, as well as an audit report;
- declare CFC profits if they exceeded the threshold of RUB 10 million by filing a 3-NDFL tax return; - declare other income on which tax was not withheld in the territory of the Russian Federation.
If an individual fails to take the above actions by 2 May 2023, they may face the following penalties:
RUB 500,000 – for each foreign company or structure without a legal entity for which no CFC Notification was submitted;
RUB 500,000 – for each foreign company or structure without a legal entity for which financial statements and an audit report were not submitted;
20% of the amount of unpaid tax on CFC profits exceeding the threshold of RUB 10,000,000;
From 5% to 30% of the amount of unpaid tax for failure to file the 3-NDFL tax return (the penalty is calculated on the entire amount of unpaid tax on all types of undeclared income).
We offer:
To avoid the risk of tax offences and the imposition of tax liability on an individual, ALPINE TAX offers its services for preparing and submitting the above-mentioned set of documents to the tax authorities.
The cost of our services depends on several factors: the number of foreign companies and structures, the financial transactions carried out by such companies, and the amount and type of income received by the individual.
Additionally:
If you have not previously reported your foreign companies and structures without a legal entity, and have not paid taxes, then until 28 February 2023 there is an opportunity to avoid penalties and the need to pay part of the taxes in arrears by submitting a special declaration under the capital amnesty.
The ALPINE TAX specialists are ready to help you prepare the special declaration and the necessary set of documents.
Our contacts:
Sergey Gerasimov
Managing Partner
Mob: + 7 (916) 733 3983
Maxim Klyuchnikov
Partner
Mob: + 7 (916) 220 9777
