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Tax Registration of Foreign Organizations: List of Documents and Terms of Registration with the Federal Tax Service

Publication date: 22.01.2023
Despite many restrictions, the Russian market is still of great interest to foreign companies. According to Russian legislation, there are cases when foreign legal entities must register with the tax authorities and comply with their obligations to accrue and pay taxes. Violating the law can lead to penalties.

In this article, we will talk about the features of registering foreign organizations with the tax authorities of the Russian Federation, find out what documents must be submitted to the Federal Tax Service, as well as consider some other equally important issues.

Which Foreign Companies Must Register with the Federal Tax Service?

The regulations for tax registration of foreign organizations are enshrined in the order of the Ministry of Finance No. 293N dated 12/28/2018, as amended on 07/31/2020. The document establishes a list of foreign companies that must be registered with the Federal Tax Service. The list includes:

1

separate divisions of foreign companies;

2

branches and representative offices of foreign legal entities, regardless of whether they have accreditation;

3

diplomatic missions;

4

foreign enterprises operating through divisions that are residents of the Russian Federation;

5

foreign companies providing electronic and telecommunications services;

6

non-profit organizations operating in Russia.
Also, any foreign enterprise that opens an account in one of the Russian banks is required to register with the Federal Tax Service. In this case, registration is carried out at the location of the financial and credit institution, and the day of registration is the date the information is entered into the USRN.

List of Documents and Tax Registration of Foreign Organizations

The procedure for filing an application for registration of foreign organizations with the tax authorities, the list and forms of documents are reflected in the order of the Federal Tax Service of Russia No. ED 7 14/376@ dated 06/09/2020. It is not possible to cover in detail all the rules for tax registration of foreign companies within one article, so let's dwell on the main points. For more detailed information, please see the order of the Federal Tax Service.

Separate Divisions of Foreign Companies

Foreign companies that operate in Russia through branches, bureaus, offices, and any other non-accredited forms must provide the following documents for registration with the Federal Tax Service:

1

a standard application;

2

constituent documents;

3

an extract from the USRLE;

4

a document issued by an authorized body of a foreign state and reflecting the status of the taxpayer and the tax code (if the taxpayer code is absent in the extract from the USRLE);

5

the decision of the company's authorized body to open a division in Russia;

6

the provision on the establishment of a separate division;

7

a notarized power of attorney issued in the name of the company's head.

These documents must be submitted to the tax office no later than thirty days from the start of the activities of a separate division.

Accredited Branches and Representative Offices

Such organizations are registered with the tax authorities based on data entered in the State Register of accredited branches and representative offices. The date of registration with the tax office corresponds to the date the information was entered into the specified register.

Diplomatic Missions

Diplomatic missions are registered with the tax service after filing an application and submitting documents confirming their diplomatic status and/or other documents justifying their activities in Russia.

Foreign Representative Offices with Resident Status

A foreign enterprise that operates through a separate division may apply for recognition as a tax resident. The application is submitted to the inspectorate of the Federal Tax Service in the region where the unit is present. The date of registration becomes the date of acceptance of the application, or the status of a resident of the Russian Federation is assigned to the company from the beginning of the year following the year in which the application was submitted.

Please note that if an organization declares itself a tax resident of the Russian Federation, it will automatically lose its CFC status (controlled foreign company).

E-Service Providers

Regardless of who is provided with electronic and telecommunications services (individuals or legal entities), foreign organizations must register with the Federal Tax Service and pay taxes on the income from their activities. The exception is the provision of services through an intermediary. In this case, the entire responsibility for paying taxes rests with the organization providing intermediary services.

In other cases, a foreign legal entity must register with the Federal Tax Service within thirty days from the date of entry into the Russian market and submit an application and an extract from the USRLE to the tax service.

Non-Profit Organizations

Religious and public organizations, foundations, associations, unions, and other non-profit organizations must also be registered with the Federal Tax Service. Registration with the tax service is based on the information contained in the relevant state registers and is carried out in the manner prescribed by Federal Law No. 7 FZ of 01/12/1996. The date of registration is the date of making an entry in the register.

Terms of Service Provision

You can submit documents for registration at the nearest tax office, as well as send them by Russian post or through the online service of the FTS. Wait for the deadline of five days for consideration of the application and verification of documents. If the application is filled correctly and the documents are submitted in full, after this period the organization is issued a certificate confirming its registration with the tax authority.

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