Taxation Of Foreign Legal Entities In Russia

Foreign organisations, international organisations – legal entities with permanent divisions in Russia, diplomatic and other representations of equal status must get registered with Russian tax authorities.

Foreign organizations engaged (or planning to be engaged) in operation in the RF through divisions for over 30 calendar days per year (in turn or in aggregate)

- must get registered with a tax body at the location of conducting the activity (within 30 days after operations

started), it does not matter whether the activity afterwards is recognised as subject to taxation or  not. After registration the certificate of established form is issued with TIN (taxpayer’s identification number) and CRR (code number of reason for registration).

- Should organisation have more than one division at the territory controlled by one tax body, the organisation informs the tax body about each division at that territory. In this case the tax body issues information letter with CRR indicated. Should organisation have its divisions (newly opened included) at the territory controlled by different tax bodies, it must get registered with each tax body and receive separate certificates with TIN and CRR indicated.

Documents submitted to the tax body for registration:

• Application according to the established format

• Excerpt from the Trade Register, incorporation certificate or similar document – for initial registration

• Reference from the foreign tax body of the country of incorporation with indicated taxpayer's number (its analogue) – for initial registration

• Decision of an authorised body of the foreign organisation on creation of a division in Russia or copy of the contract serving as grounds for operations in Russia

• Power of attorney issued by the foreign organisation to the head (deputy head) of the division

• Copy of registration certificate issued by Russian tax body a foreign organisation is registered with – for registration of newly created division at the territory under the jurisdiction of a different tax body.