The Russian Ministry of Finance (MoF) recently issued a clarification highlighting the mandatory requirements that a foreign entity must fulfil to authenticate.

1. Russia Clarifies Consequences Related to Tax Residence Change
(Bristol, UK) - The Russian Ministry of Finance (MoF) recently issued a clarification highlighting the
mandatory requirements that a foreign entity must fulfil to authenticate its tax residence in order to
benefit from tax treaties, especially when there is a change in residence, reports Nair & Co.’s
international tax team.
If a foreign entity wants to benefit from tax treaty provisions, it is required to submit a Tax Residence
Certificate (TRC) verifying the state where the company is a tax resident. This confirmation has to be
duly certified by the concerned state’s respective authority; in case the certificate is executed in a
foreign language, it has to be translated into Russian.
In order to apply to claim tax treaty benefits, the foreign entity must submit their TRC before the
payment date of income. The relevant provisions of law do not include provisions related to a TRC
validity period, as the income of a foreign entity is not connected with any specific tax period.
Lastly, if the place of residence of a foreign entity changes after filing the certificate with a Russian tax
agent, it is the responsibility of the tax agent to calculate and withhold outstanding corporate income
taxes on subsequent payments.
For more information about doing business overseas or to learn more about our a
href="http://www.nair-co.com/international-tax-compliance-services.aspx">International Tax team
please contact us.
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2. About Nair & Co.
Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax
and compliance services for the set up and management of your international operations. Our model of
a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand
business and manage risk so they can focus on their core business and sustain growth with minimal risk,
stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in
Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more
at www.nair-co.com
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