Russia: Adopts OECD Action 13 BEPS Recommendations

Tuesday, November 28, 2017

Russia: OECD Action 13 BEPS Project Recommendations have been adopted.

Russia: 27 November 2017 – published a federal law (with immediate effect) to adopt the three tiers of documentation pursuant to OECD’s Action 13 recommendations. The publication is available here (only in Russian).

Action: Determine the applicability of the new transfer pricing documentation requirements for your group’s Russian entities.

Russian members of a multinational group with annual consolidated revenues over RUB 50 billion in the prior fiscal year are required submit the following transfer pricing files:

  • Country-by-country report – to be prepared based on the fiscal year of the multinational group. If the ultimate parent is a Russian company, or an authorised member, the CBC report must be filed not later than 12 months after the reporting period. If the Russian entity is not the ultimate parent of the group, then it must file a CBC report upon request by the tax authority. However, if the ultimate parent submits a CBC report and there is an automatic exchange agreement between Russia and the relevant jurisdiction, the submission deadline is to be set by the Russian tax authority, but it cannot be less than three months after the date of receiving the request.
  • Master File (global documentation) – to be prepared based on the fiscal year of the multinational group. The tax authority can request the Master File not less than 12 months after the end of the reporting period.
  • Local File (national documentation) – must contain information required by current documentation rules, with some additions required under the new law, and is to be prepared on a calendar year basis. The Local File can be requested by the tax authority on or after 1 June following the end of the relevant period, although there are some transitional considerations for 2018 and 2019.
  • Notification of their membership in a multinational enterprise – must be filed not later than eight months after the end of the reporting period.

The requirements will apply to fiscal years starting in 2017 – except with respect to the Local File which will be required starting from 2018. (Note, however, that current transfer pricing documentation rules still apply).

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by aspect advisory in: Europe