FAQ

Reform of International Taxation In Russia

Publication date: 29.09.2020

Financial Law Review, 2020, Issue 19 (3)/ 2020, pp. 20 - 35

https://doi.org/10.4467/22996834FLR.20.012.12747

Authors

Elena Kilinkarova
Law Faculty, Saint Petersburg State University
https://orcid.org/0000-0003-1262-1448 Orcid
All publications →

Titles

Reform of International Taxation In Russia

Abstract

This contribution deals with signifi cant changes in regulation of cross-border taxation in Russia that have been introduced since 2014 mainly due to the impact of the governmental policy of deoffshorization aimed at fighting the offshore character of Russian economy. At the same time participation in the OECD BEPS Project also infl uenced the international tax landscape in Russia. The analysis of the key substantive and procedural rules that were introduced in the course of the international tax reform in Russia is the key goal of the article. The author covers controlled foreign companies rules, management test for corporate tax residence, beneficial ownership concept, automatic exchange of information and key changes in the tax treaty network. The author aims to show steps that were taken by Russia in its reform of international taxation in order to confi rm the hypothesis that in cross-border taxation Russia uses the widespread mechanisms and soft law recommendations while going its own way and often setting its own versions of the main elements of the international taxation landscape. Another important issue under consideration is the balance between unilateral, bilateral and multilateral regulation of international taxation in Russia.

References

Download references

Arnold B.J. The Evolution of Controlled Foreign Corporation Rules and Beyond, Bulletin for International Taxation, Vol. 73, No 12, 2019.

Baker Ph., Pistone P. The Practical Protection of Taxpayers’ Fundamental Rights: General Report, Cahiers de Droit Fiscal International, Vol. 100b, 2015.

Baker Ph., Pistone, P. BEPS Action 16: The Taxpayers’ Right to an Effective Legal Remedy Under European Law in Cross-border Situations, EC Tax Review, Vol. 25, Issue 5/6, 2016.

Bruk, B.: Nalogovoe rezidentstvo inostrannyh organizacij v Rossii: kriticheskij analiz novell rossijskogo zakonodatel’stva [Critical Analysis of the New Provisions of Russian Tax Law Concerning Russian Tax Residence of foreign organizations], Zakon, No 2, 2015

Demin, A., Nikolaev, A.: The Benefi cial Owner Concept in the Context of BEPS: problems and prospects, Financial Law Review, No 1 (13), 2019.

Ivanova, N. et al.: Transfer Pricing Rules in Russia and Germany: similarities and differences, Intertax, Vol. 45, Issue 2, 2017.

Huang, X.: Ensuring Taxpayer Rights in the Era of the Automatic Exchange of Information: EU Data Protection Rules and Cases, Intertax, Vol. 46, Issue 3, 2018.

Kilinkarova, E. et al.: Russia, in: Traversa, E., Corporate Tax Residence and Mobility, Amsterdam: IBFD, 2018.

Meindl-Ringler, A.: Benefi cial Ownership in International Tax Law, Netherlands: Kluwer Law International B.V., 2016.

Mikhaylova, M., Akhonina Yu.: Thin Capitalization in Russia: Rules, Trends and Changes, Intertax, Vol. 44, Issue 11, 2016.

OECD, Addressing Base Erosion and Profi t Shifting, Paris: OECD Publishing, 2013.

OECD, Action Plan on Base Erosion and Profi t Shifting, Paris: OECD Publishing, 2013.

Presidential Address to the Federal Assembly of December 12, 2013, http://en.kremlin.ru/events/president/transcripts/messages/19825

Presidential Address to the Nation of June 23, 2020, http://en.kremlin.ru/events/president/transcripts/statements/63548

Presidential Address to the Nation of March 25, 2020, http://en.kremlin.ru/events/president/news/63061

Results of the application of controlled foreign compeny rules in 2017, https://www.nalog.ru/rn77/news/activities_fts/7144772/

Starzhenecskaja, L. Pravovoe regulirovanie nalogooblozhenija kontroliruemyh inostrannyh kompanij: opyt zarubezhnyh stran i Rossii [Legal Regulation of Taxation of Controlled Foreign Companies: Experience from Foreign Countries and Russia], Russia: Statut, 2018.

Legal acts

Federal Law of 24 November, 2014 No 376-FZ On amending Parts I and II of the Tax Code of the Russian

Federation (in respect of taxation of the profi ts of controlled foreign companies)” Tax Code of the Russian Federation, part 1, of 27 July, 1998 (as amended)

Tax Code of the Russian Federation, part 2, of 5 August, 2000 (as amended)

Convention on Mutual Administrative Assistance in Tax Matters, of 25 January, 1988 (as amended)

Multilateral Convention to Implement Treaty Related Measures to Prevent Base Erosion and Profit Shifting, of 7 June, 2017 with Russia’s reservations and notifications

Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information, of October, 2014

Multilateral Competent Authority Agreement on the Exchange of Country-by-Coumtry Reports, of 27 January, 2016

Letter of Federal Tax Service CA-4-7/9270@ of 17 May, 2017

Letter of Federal Tax Service CA-4-9/8285 of 28 April, 2018

Letter of Federal Tax Service CA-4-7/8448@ of 6 May, 2019

Information

Information: Financial Law Review, 2020, Issue 19 (3)/ 2020, pp. 20 - 35

Article type: Original article

Authors

https://orcid.org/0000-0003-1262-1448

Elena Kilinkarova
Law Faculty, Saint Petersburg State University
https://orcid.org/0000-0003-1262-1448 Orcid
All publications →

Law Faculty, Saint Petersburg State University

Published at: 29.09.2020

Article status: Open

Licence: CC BY-NC-ND  licence icon

Percentage share of authors:

Elena Kilinkarova (Author) - 100%

Classification number:

JEL Classification System:

International Law (K33)
Tax Law (K34)

Article corrections:

-

Publication languages:

English

View count: 492

Number of downloads: 487

<p>Reform of International Taxation In Russia</p>