The Cabinet of Ministers has finalized a draft law on amendments to the Tax Code. They are intended to close a number of tax evasion loopholes and to tighten control over pricing in transactions between interdependent companies.
According to RBC, fines for violations of transfer pricing rules will be increased. For foreign economic transactions, the sanctions will amount to a minimum of 500,000 roubles. The list of persons considered to be interdependent is being expanded. It will include controlled foreign firms with one controlling person.
A 15% tax is introduced on any services and work rendered to companies from the Russian Federation by foreign interdependent firms. This is equal to the rate on dividends. The most sensitive for entrepreneurs will be the increase in the fine for the use of non-market prices. It may reach 300-400% of the amount of underpayment.
Recall that Adidas stores will open in Russia under a new name.