RUSSIA AND AUTOMATIC EXCHANGE OF TAX INFORMATION (CRS)

Automatic exchange of tax information is a new and inevitable phenomenon. In 2018, all Russian citizens who own foreign companies will face with the automatic exchange of tax information. Automatic exchange will affect the beneficial owners of the RF – even those who do not own their foreign companies directly.

What is the automatic exchange of tax information?

The automatic exchange of tax information (CRS) is part of the global process of deofshorization. Its goal is to give the tax authorities of different countries a tool that allows them to “see” the real cash flows and those to whom they are going, i.e. owners of business.

For this, each year banks and other financial institutions (such as payment systems) are required to transfer to the tax authorities data on all accounts opened by foreign companies and individuals. At the same time, automatic exchange of tax information occurs at the end of the year preceding such an exchange. For example, in 2018, The Federal Tax Service of Russia will receive data for the 2017 fiscal year.

Is it possible to prepare for an automatic exchange?

Of course it is possible, and even need to! The owners of foreign companies should understand that automatic exchange of tax information is not a one-time event. It will happen all the time.
Tax Service will receive data every year, which will allow it to know exactly who uses foreign companies and does not pay taxes.

Preparation for the exchange of tax information is important, first of all, for the owners of business.
Having received information about the presence of foreign companies in the ownership of Russian citizens, The Federal Tax Service of Russia will check the owners of foreign companies for compliance with the rules of the law “On Controlled Foreign Companies”.

How can SBSB specialists help in the automatic exchange of tax information?

Our specialists are ready to provide comprehensive assistance in the automatic exchange of tax information – this is an analysis of the existing corporate structure, consulting, developing recommendations for minimizing the risks associated with the automatic exchange of tax data and much more.

For over five years we have been consulting our clients, CIS residents, in the field of taxes, corporate law, e-commerce, international licensing with the use of crypto currency and integrated business support in more than 40 countries.

We help your business to become international.