The need to generate a notice of participation in foreign organizations appeared relatively recently - since January 2015. For a number of persons, this document is mandatory, while its compilation takes place according to a certain form of C-IO.
FILES
Who is required to notify
This document must be submitted:
- citizens of Russia;
- persons with dual citizenship;
- those who do not have citizenship at all;
- enterprises and organizations.
In addition, the obligation to form the document also lies with some foreign companies, including those that have divisions and branches within the Russian Federation and are considered, respectively, the taxpayers of our country.
The reason for filing a notification is both joining a foreign organization and leaving it. When "reformatting" the shares, the regulatory authorities should also be notified about this.
Where and when to submit the document
The notification is submitted to the local territorial department of the tax service, within a period not later than thirty days (according to the calendar) from the date of "entry", change of share or "exit" from a foreign organization.
Refusal to accept a document
Sometimes tax authorities may refuse to accept submitted documents. Notification of participation in foreign organizations in this case is no exception. True, the list of reasons for refusal is not so long:
- incorrectly completed form;
- failure to provide original supporting documents;
- poor copy quality.
To correct the situation, you need to correct all the shortcomings and apply again.
What if you don't give notice?
Failure to fulfill the obligation to transmit a notice of participation in foreign organizations can lead to serious consequences in the form of a rather large fine (up to several tens of thousands of rubles).
At the same time, it should be remembered that the deliberate concealment of this fact will also not end in anything good, since today the tax authorities have access to various sources of information (including assisting with the tax services of other states in terms of information exchange).
Rules for filling out a notice
If you need to generate and send to tax office notification of participation in foreign organizations, we recommend that you use the tips below and see a sample of filling out the document.
To begin with, we recall that the notification form has a unified form and it is mandatory for use.
- You can enter information into the form either by hand (but only with a blue, black or purple ballpoint pen) or in hard copy on the computer.
- Words must be written in large capital letters, legibly, so that it is readable and understandable.
- Make mistakes in the form, do not make blots. If an oversight nevertheless happened, you should not correct it, it is better to fill out another form. And, of course, it is forbidden to indicate deliberately false information in the notification - if such facts are discovered, the consequences can be the most unpleasant.
If, after the notification has been sent, the taxpayer suddenly discovers that there was some inaccuracy in it, he has the right to submit an updated notification - there are no sanctions for this, the main thing is to meet the deadlines.
Sample filling out a notice of participation in foreign organizations
Filling out the first sheet
On the first page at the top of the notice, information about the taxpayer is entered: details of the company, its full name (with a deciphered organizational and legal status). It also indicates the number of the adjustment, the code of the tax authority and the code of the taxpayer, the reason for the formation of the document.
The bottom of the page is divided into two sections. In the left one, you first need to indicate the notifier's code (the transcript is given immediately), then enter his personal and contact details, sign and fill out the date.
Filling out the second sheet
The second page of the notification is filled out if the speech is conducted on behalf of an individual. At the same time, as mentioned above, it does not matter whether he is a citizen only Russian Federation, has dual citizenship or none at all. All information entered here must correspond to a passport or other identity document. If the notifier leaves this page blank, he must still put his signature and date under it (the same applies to other pages of the document).
Filling out the third sheet
The third page contains information about the foreign organization about which in question. First, you need to enter its name here, both in Russian and English.
The country code, company registration number and address of its actual location, other known data are entered below. Then it should be noted whether the notifier is related to the organization: directly, indirectly, or both, the date, month, year of occurrence of participation, share and end date (the latter - if the document is submitted in connection with the withdrawal from the organization).
Filling out the fourth sheet
The fourth page includes information about a Russian company that is a member of a foreign organization. The information entered here must be identical to the constituent papers of the company.
Filling out the fifth sheet
Data on participation in a foreign structure without the formation of a legal entity are entered on the fifth page. person (i.e. partnership, foundation, trust, partnership, etc.).
Completing the sixth sheet
The sixth page indicates the status of a participant in a foreign structure without the formation of a legal entity. person (i.e. who is the applicant: the founder of such a company, the recipient of income or a controlling entity).
Completing the seventh sheet
Finally, the last - the seventh page - reveals the procedure for the notifier's indirect participation in a foreign company: all links of the chain, which includes a foreign organization, in which, in turn, the notifier participates, are indicated here, as well as the serial number of his participation and his share.
How to send a notification
For sending to tax service Notifications can be used in one of several ways:
- The most reliable and simple is to take the completed form to the tax office in person and transfer it from hand to hand to a specialist.
- You can forward the notification with a representative, provided, of course, that he will have a power of attorney certified by a notary.
- And one more way: send the document by registered mail with acknowledgment of receipt via regular mail - this will take longer, but it guarantees that the notification will be received by the tax authorities.
If an organization or individual recognized as tax residents of the Russian Federation controls a foreign organization that is not a tax resident of the Russian Federation, or a foreign structure without forming a legal entity, such a foreign organization (structure) is recognized as a controlled foreign company (CFC) (clauses 1, 2 of Art. 25.13 of the Tax Code of the Russian Federation).
What does it mean to control in order to recognize a CFC, is indicated in Art. 25.13 of the Tax Code of the Russian Federation. Control includes, for example, the ability to exert a decisive influence on decisions made by a foreign organization on the distribution of profits.
For example, the controlling person of a foreign organization is recognized as an organization whose share of participation in the "foreigner" is more than 25%, while such a share does not provide for exclusively direct or indirect participation through public Russian organizations.
The presence of a CFC in an organization or individual obliges them to notify the tax office of such “foreigners” (clause 3, clause 3.1, article 23 of the Tax Code of the Russian Federation).
CFC notification form 2018
The controlling organization submits a notification at its location, and an individual controlling a foreign company - at its place of residence (clause 3.1, article 23 of the Tax Code of the Russian Federation).
The above form of notification should not be confused with the Notification of participation in foreign organizations (on the establishment of foreign structures without forming a legal entity) (form according to KND 1120411) (approved by Order of the Federal Tax Service dated 04.24.2015 No. ММВ-7-14 / [email protected]).
Organizations must submit a CFC Notice to in electronic format, and individuals can choose whether to submit it by e-mail or on paper (clause 4, article 25.14 of the Tax Code of the Russian Federation).
CFC notice: due date
When to file a CFC notification? Do I need to file a CFC notice annually?
A notification of a CFC must be submitted no later than March 20 of the year following the year in which the controlling person recognized income in the form of CFC profit, which was subject to personal income tax or income tax (clause 2, article 25.14 of the Tax Code of the Russian Federation).
Accordingly, if such income was not recognized last year, there is no need to file a CFC notice this year.
Procedure for filling out a notice of a CFC
The procedure for filling out the Notice of CFC is given in Appendix No. 2
TO general requirements Completion of the Notice may include the following:
- filled in one copy by hand in black or blue ink or using a computer;
- it is not allowed to correct errors using a corrective or other similar means, double-sided printing on paper, staple sheets, leading to damage to the paper;
- filling in the fields with the values of textual, numerical, code indicators is carried out from left to right, starting from the first (left) familiarity;
- filling of text fields is made by capital printing characters;
- when printing the Notice on a printer, it is allowed that there are no borders of familiarity and dashes for unfilled familiarity. Signs must be printed in Courier New, 16 to 18 points high.
The notice consists of title page, sheet "Information about an individual", as well as sheets A, A1, B, B1, C, D, D1, D2.
If the information in any sheets is not related to the reporting organization or individual, these sheets are submitted, but not filled out.
If you need to fill in information about several foreign organizations or structures, fill in, respectively, several sheets A - D2.
A detailed procedure for filling out each sheet of the Notification is given in Appendix No. 2 to the Order of the Federal Tax Service of December 13, 2016 No. ММВ-7-13 / [email protected]
Notice of CFC 2018: sample filling
Let us cite for the CFC Notice in respect of a controlled foreign company in which the share of direct participation of a Russian organization is 75%.
The form and procedure for filling out the notification, as well as the electronic format and procedure for its submission, were approved by Order of the Federal Tax Service of Russia dated December 13, 2016 No. ММВ-7-13/679.
In the notification, specify: the tax period for which the notification is submitted;
the name of the controlled foreign organization; registration number of a foreign organization, code as a taxpayer or their analogues assigned to it during registration (incorporation), its address; the organizational form of a foreign structure without forming a legal entity, the name and details of the document on its establishment, the date of establishment (registration), registration number (other identifier); the last day of the period for which the annual financial statements of the foreign organization (structure) are prepared; the date of preparation of the annual financial statements of a foreign organization (structure), as well as the date of completion of the tax period for income tax in accordance with its personal law; the date of drawing up the auditor's report on the annual financial statements of a foreign organization, structure (for mandatory and voluntary audits); share of participation in a foreign organization; grounds on which an organization (citizen) is recognized as a controlling person; the grounds on which the profits of a controlled foreign company are exempt from taxation.
Submit the notification no later than March 20 of the year following the income tax (PIT) tax period. For example, for the income of a foreign organization received in 2016, the notification must be submitted no later than March 20, 2018. No later than March 20, 2017, a notification must be submitted on the income that a foreign company received in 2015.
The obligation to submit a notification does not depend on whether the profits of a foreign company are exempt from taxation or not. Submit a notice anyway.
Andrey Kizimov, Acting State Councilor of the Russian Federation of the 3rd class, Candidate of Economic Sciences
What are the obligations of the controlling person (This recommendation is only available in the VIP version)
Controlled Companies Notice
Notification of controlled foreign companies must be submitted by both organizations and individuals who act as controlling persons in relation to foreign organizations and structures without forming a legal entity.
The obligation to submit a notification does not depend on whether the profits of a foreign company are exempt from taxation or not. Submit a notification in any case (letter of the Ministry of Finance of Russia dated October 7, 2015 No. 03-08-05 / 57368).
However, if the controlling persons have ceased participation in the controlled foreign company before the moment when it is necessary to determine tax base on its income tax, they no longer have to submit a notification (letter of the Ministry of Finance of Russia dated August 4, 2015 No. 03-03-06 / 44942).
When to file
Submit a notice of controlled foreign organizations (structures) no later than March 20 of the year following the income tax (PIT) tax period. For example, for the income of a foreign organization received in 2016, the notification must be submitted no later than March 20, 2018. Indeed, such incomes are included in the taxable base in 2017, and declared in 2018. That is, no later than March 20, 2017, you must submit a notification on the income that a foreign company received in 2015.
Controlling persons - organizations are required to submit a notification to the inspection in electronic form. And the controlling persons - citizens - at their discretion: in electronic form or on paper (paragraph and clause 4 of article 25.14 of the Tax Code of the Russian Federation).
Please indicate in your notice:
- the tax period for which the notification is submitted;
- the name of the controlled foreign organization (structure), the notification of participation in which (on the establishment of which) was submitted earlier;
- the last day of the period for which the annual financial statements of the foreign organization (structure) are prepared;
- the date of preparation of the annual financial statements of a foreign organization (structure), as well as the date of completion of the tax period for income tax in accordance with its personal law;
- the date of drawing up the auditor's report on the annual financial statements of a foreign organization, structure (for mandatory and voluntary audits);
- share of participation in a foreign organization;
- grounds on which an organization (citizen) is recognized as a controlling person;
- the grounds on which the profits of a controlled foreign company are exempt from taxation.
With indirect participation, including through Russian organization or a foreign structure without forming a legal entity, in the notification, show the procedure for such participation. To do this, enter information about each subsequent participant. Namely:
- name of the foreign organization (structure);
- registration number of a foreign organization, code as a taxpayer or their analogues assigned to it during registration (incorporation), its address;
- the organizational form of a foreign structure without forming a legal entity, the name and details of the document on its establishment, the date of establishment (registration), registration number (other identifier);
- ownership interest in each subsequent entity through which you indirectly participate in a controlled foreign entity;
- name, PSRN, TIN, KPP, if indirect participation is carried out through a Russian organization.
This follows from the provisions
Every year, legal entities and individuals must provide information to the tax authorities on controlled foreign organizations if, on the 31st day of the reporting year, the taxpayer was recognized as a shareholder of a foreign enterprise. The tax authorities are only interested in profitable companies, however, it is also necessary to submit a CFC notice for unprofitable organizations. What other details should be considered, we will tell below.
KIK - what is it?
In Russian law, a controlled foreign company is understood as an organization in which citizens of the Russian Federation and legal entities that are residents of the country participate. Equity presence for individuals- at least 10% of the capital (if the share of other participants - citizens of the Russian Federation is equal to or more than 50%), for legal entities - at least 25%. It should be noted that the share of participation of citizens is considered both individually and together with a spouse, as well as minor children.
Based on the results of consideration of the CFC notification, the tax authority decides whether the profit is subject to taxation in the Russian Federation.
What information should be included in the notice?
Preparation of a CFC notification will take some time, so it should be started from the beginning of the year in which the tax return is submitted. The form contains the following data (you can download it from this link), which partly coincides with the notice of participation:
- Sheet A - brief information about a foreign company (name, reporting period, date of registration of the enterprise).
- Sheet A1 - the grounds on which a person is recognized as controlling capital in a foreign organization.
- Sheet B - brief information about the foreign structure, if the organization is not a legal entity.
- Sheet B1 - the grounds on which a person is recognized as controlling capital in a foreign structure.
- Sheet B - financial statements of a controlled company translated and certified by a notary.
- Sheet G - the procedure for the indirect participation of a tax resident of the Russian Federation. Specified as a percentage up to 15 decimal places.
- Sheet G1 - information about legal entity which controls the foreign company.
- Sheet G2 - information about the foreign intermediary company through which the CFC is influenced (if any).
It is worth noting that each sheet of the CFC notification form reflects a unique serial number that the taxpayer assigns to a certain CFC independently. He should not be involved in another company in the liquidation of the first. The code simply ceases to take part in the chain of numbers of controlled enterprises.
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