The third stage of the "Offshore amnestey": the requirements for redomiciliation of foreign companies to Russia
From 1 June 2019 it will be possible to file a special tax return.
Initially the set of draft laws provided that the declarant may not have any controlled foreign companies (CFCs) and must return to Russia the funds from any foreign accounts.
The adopted set of laws requires redomiciliation (the change of the location and the country of registration of a legal entity) of the CFCs specified in the tax return to Russia’s special administrative districts (Oktyabrsky and Russky islands located in Kaliningrad Region and in Primorye Territory, respectively). This means that CFCs of which the tax authorities have been notified earlier and regarding which there are no material tax or currency risks requiring a special tax return to be filed at the third stage of the special reporting procedure, may be left unchanged without the need for such CFCs to be redomiciled to the special administrative districts.
On the other hand, no other methods to deprive the controlled foreign entity of the status of a CFC (for example, if the CFC recognises its status of a tax resident of Russia or manages to liquidate itself before the tax return is filed) will be available for the purposes of filing a special tax return regarding the declared foreign entity.
The repatriation of money from foreign accounts is mandatory only if the declarant wishes to get rid of the risks relating to such accounts. If the risks are not material or there are no risks at all, it is not necessary to specify the accounts in the tax return and repatriation is not required.