Russia (RU)

Jurisdiction Overview

IDQuestionAnswer
419 *CBCR: Is there a local filing requirement of a global country-by-country reporting file (according to OECD’s BEPS Action 13) by large corporate groups (with a worldwide turnover higher than 750 million Euro) and local subsidiaries of foreign groups? Beyond OECD Legislation: Secondary mechanism is not subject to restrictions imposed by OECD model legislation: any domestic subsidiary of a group would have to file the CbCR in all cases in which the jurisdiction cannot obtain the CbCR via AEoI.
 Data Date: 2019

Notes

 
"Russia has introduced local filing requirements in respect of financial years beginning on 1 January 2017 or thereafter...The circumstances under which local filing may occur under Russia’s legislation appear to be wider than permitted under the terms of reference. Examples of cases where local filing may be required under Russia’s legislation, but would not be permitted under the minimum standard, include: Where there is an international instrument and a QCAA in effect between Russia and the jurisdiction of residence of the Ultimate Parent Entity but the Ultimate Parent Entity has not complied with its obligation to file a CbC Report or where there is no international instrument and the Ultimate Parent Entity of an MNE Group is required to file a CbC Report with the tax authority in its residence jurisdiction, but has not complied with this obligation. These are normally situations for which it is up to the jurisdiction of residence of the Ultimate Parent Entity to deal with, through its enforcement measures. Where the Ultimate Parent Entity of an MNE Group is required to file a CbC Report with the tax authority in its residence jurisdiction, but there is no international agreement between Russia and this jurisdiction. Russia indicates under paragraph 6 the Article 105.16-3 of the Tax Code, also taking in account number of signatories of Convention on Mutual Administrative Assistance in Tax Matters and double taxation treaties a taxpayer should submit a CbC report in case of the absence of a Qualifying Competent Authority Agreement (regardless of whether there is an International Agreement. Russia notes that in practice, the probability of filing a CbC report in such circumstances is extremely low" (OECD CBCR 2018: 611-612). "Russia’s 2017/2018 peer review included a recommendation that Russia amend its legislation or otherwise takes steps to ensure that local filing is only required in the circumstances contained in the terms of reference. This recommendation remains in place" (OECD CBCR 2019: 433).
 
OECD CBCR 2018

Sources

OECD CBCR 2019