04.07.2013
1. Foreign representative office in Russian Federation
2. Foreign subsidiary company in Russian Federation
3. Limited presence on the Russian Federation territory of a foreign organization
4. Forms of presence of foreign companies in Russia: a general overview/comparison
Foreign subsidiary company in Russian Federation
General characteristics of the subsidiary of a foreign organization on the territory of the Russian Federation.
A subsidiary company is created for an indefinite period, and is a resident of the Russian Federation. So, a company fully lives by the laws of the Russian Federation, and is not much different from a simple Russian company. Including tax liability this kind of organization is under the legislation of the Russian Federation.
A subsidiary company has:
- A round seal;
- A bank account;
- The charter - as the fundamental law of the enterprise;
- Agreement on the establishment, or the decision on the establishment, if the party in the singular
Documents required for registration of a subsidiary of a foreign organization on the territory of the Russian Federation
- Application for accreditation or the creation of a subsidiary, which states: company name, time of occurrence, location, scope of activities, controls, representing the company in accordance with the statute, the opening goal of the structural units in Russia, information about business relationships with local partners and the prospects for development cooperation.
- A letter of recommendation from a Russian partner. An extract from the commercial register or a replacement of its instrument of incorporation of the foreign entity.
Taxation
PIT (Personal Income Tax)
Residents of Russia - 13% of income, which sources are in the Russian Federation
Non-residents of the Russian Federation - 30% (except for income received as dividends from equity participation in the activities of Russian institutions in respect of which the tax rate is 15%).
Income Tax
Rate of 20% used in the general case where the rates are not listed below (item 1 of Article 284): 2% - to the federal budget, 18% - included in the budget of the RF subjects.
The 0% rate
• For medical and educational institutions (Article 284 paragraph 1.1);
• for agricultural and fisheries producers, if they meet the criteria set out in Art. 346.2 p.2.;
• dividends, the dividends if the recipient organization has a stake in the authorized capital of the company paying the dividend is more than 50% (A3.1 Art. 284);
• bonds issued before 1997 (Art. 284 § 4.3).
Rate of 9%
• on the dividends that do not fit with the rate of 0% (A3.2 Article 284);
• municipal securities issued before 2007 (Art. 284 § 4.2).
The 15% rate
• dividends from foreign companies (Art. 284 § 3.3);
• government securities issued after 2007 (Art. 284 § 4.1).
Rate of 10% and 20%
• apply to foreign companies (Article 284 paragraph 2).
VAT (Value Added Tax)
Rate 18% - basic.
The 0% rate.
This rate applies to exported goods. This tax rate suggests that foreign buyers VAT not pay your supplier. Accordingly, the budget of the company does not pay VAT on goods sent for export. However, it should be noted that the VAT related to the cost, that is brought against the suppliers, the company is entitled to send to the deductible. That is, exporters are entitled to a VAT refund from the budget.
In order to apply a rate of 0%, the organization shall within six months from the date of export of the goods to confirm their right to a VAT rate, leaving the tax office documents confirming export (Article 165 of the Tax Code).
The 10% rate.
This rate applies to socially important goods, a list of these items is presented in the article. 164 paragraph 2 of the Tax Code, this includes a number of food and medical supplies, baby products, as well as some printed matter. The list is quite extensive, and better acquainted with him directly to the Tax Code, the tax code download, you can also at this site.
STS (Simplified Tax System)
In accordance with sub-paragraph of Article 14, paragraph 3. 346.12 of the Tax Code is not entitled to use the simplified taxation system organizations, in which the share of the direct participation of other organizations is more than 25 percent. This restriction does not apply to the organization, the authorized capital of which is wholly composed of contributions of public organizations of disabled persons, if the average number of disabilities among their employees is not less than 50 percent, while their share of the wage fund - not less than 25 percent.
Accounting
Subsidiary of a foreign organization on the territory of the Russian Federation carries out its accounting records in accordance with Russian law. Consolidated financial statements is / supplements headache (parent) organization.
Controlled transactions
Transaction, one of the parties is a person, a place of registration, or place of residence or place of tax residence which are state or territory included in perechengosudarstv and territories, approved by the Ministry of Finance of the Russian Federation in accordance with paragraphs. Section 3, Article 1. 284 of the RF-controlled recognized if the sum of income from this type of transactions for the calendar year exceeds 60 million rubles
Liquidation of subsidiary
The Company may be voluntarily liquidated in accordance with the Civil Code of the Russian Federation with regard to the requirements of the Federal Law "On Joint Stock Companies" and the Charter of the company. The Company may also be liquidated and the decision of the court.
Liquidation of the legal entity entails its termination without the transfer of rights and obligations in succession to other parties. In accordance with Article 61 of the Civil Code, a legal entity may be liquidated:
- By the decision of its founders (participants) or the body of a legal person authorized by the constituent documents, including in connection with the expiration of the term for which created a legal entity, with the achievement of the objective for which it was created;
- By the court in the case made during its creation of gross violations of the law, if these violations irremediable or activities without proper authorization (license), or prohibited by law, or in violation of the Constitution or with other repeated or serious violations of the law or other legal acts, or the systematic implementation of a non-profit organization, including social or religious organization (association), charitable or otherwise fund activities inconsistent with its statutory goals, as well as in other cases stipulated by the Civil Code of the Russian Federation.
For more information, including the date and the list of documents, as well as other assistance in opening a representative of your company in Russia refer to AS-AUDIT specialists.
Теги: Accounting, Personal Income Tax, PIT, STS
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