Deadline to notify about controlled foreign companies
The deadline to submit a notification about controlled foreign companies (CFC) for 2023 is approaching:
March 20 for legal entities and
May 2 for individuals.
Russian tax residents have to submit the notification to local tax authorities if they own:
- >25% of a foreign company's shares;
- >10% of a foreign company's shares, while >50% of this company’s shares belong to Russian tax residents.
Failure to send a notification, late submission, or non-provision of financial statements and an audit opinion (if a mandatory or initiative audit took place) results in
a fine of 500 kRUB.
There is no need to submit financial statements and an audit opinion, if an individual switched to paying
tax based on CFC fixed income, which amounts to 5 mRUB.
