The Federal Tax Service has provided clarification, stating that the conversion of tax on the income of foreign companies into Russian roubles by tax agents, for payments made to the budget before August 31, 2023, using the exchange rate prevailing on the date of payment, is not considered an error. This refers to the tax that has been duly remitted to the budget prior to the deadline of August 31, 2023.
There is no obligation to file revised calculations for the 2023 reporting periods. Nevertheless, it is important to note that the tax agent possesses the legal right to carry out this action.
As a reminder, on August 31, 2023, the amendments to the Tax Code of the Russian Federation came into effect. For these purposes, the amount of tax calculated in foreign currency should be recalculated on the date on which income is paid to a foreign organization. Previously, this was done on the date the tax was paid. The impact of this regulation was extended to encompass legal relationships that originated from January 1, 2023, onwards.
It is worth highlighting that the tax authorities have recently provided guidance on how to complete a tax calculation for income of foreign companies using the previous form, prior to the form's alteration. Document: Letter of the Federal Tax Service of Russia dated September 04, 2023 N КВ-4-3/11220@.
There is no obligation to file revised calculations for the 2023 reporting periods. Nevertheless, it is important to note that the tax agent possesses the legal right to carry out this action.
As a reminder, on August 31, 2023, the amendments to the Tax Code of the Russian Federation came into effect. For these purposes, the amount of tax calculated in foreign currency should be recalculated on the date on which income is paid to a foreign organization. Previously, this was done on the date the tax was paid. The impact of this regulation was extended to encompass legal relationships that originated from January 1, 2023, onwards.
It is worth highlighting that the tax authorities have recently provided guidance on how to complete a tax calculation for income of foreign companies using the previous form, prior to the form's alteration. Document: Letter of the Federal Tax Service of Russia dated September 04, 2023 N КВ-4-3/11220@.