Tax registration of organisations at the location of their detached subdivisions.

29.10.2010

Legal Update No. 183.

Goltsblat BLP advises that, in connection with the provisions of  Federal Law of 27 July 2010 No. 229-ФЗ “On amendment of parts 1 and 2 of the Tax Code of the Russian Federation” (the Law) coming into effect on 2 September 2010, the Federal Tax Service has issued letter of 3 September 2010 No. МН-37-6/10623@ (the Letter) clarifying how organisations should register with tax authorities at the location of their subsidiaries, representative offices and other detached subdivisions.

The Law introduces the following rules, specified in the Letter, concerning such registration:

  • different procedures are envisaged for registering subsidiaries, representative offices and other detached subdivisions not constituting subsidiaries or representative offices;
  • no application is required any longer for the tax office to register the taxpayer at the location of its subsidiary or representative office, as the tax office will itself do this when it receives the relevant information from the Companies’ Register;
  • no such application is required, either, at the location of other detached subdivisions (other than subsidiaries and representative offices), but it is still necessary to notify the tax office at the location of the organisation within one month of setting them up.  On this basis, the tax office will itself register the taxpayer at the location of these other detached subdivisions;
  • if a detached subdivision changes its location, there is no need to close it at the old address and open it up again at the new address, since it will now suffice to provide the tax office at the location of the organisation with the new address of the detached subdivision within 3 days of the change of address;
  • when selecting the tax office for registering a Russian organisation at the location of its detached subdivision in the cases envisaged by clause 4, article 83 of the Russian Tax Code, the taxpayer informs the tax office at the location of the organisation of which authority is has chosen;
  • it is now permitted to submit to and receive from the tax office documents on registration (deregistration) of detached subdivisions by communications channels.

These changes in the procedure for registering detached subdivisions require development of document templates (applications, notifications). Until these are approved, the Federal Tax Service has suggested in its Letter an interim mechanism for implementing the new procedure and recommended document formats.

The letter also notes that registration documents and notifications of choice of tax office can be submitted in electronic format by communications channels and documents can be received in the same way only once a relevant procedure has been adopted, an electronic digital signature is in place and the software has been rolled out. Since no such procedure exists, these provisions of the Russian Tax Code on transmission of documents by communications channels are not yet applicable.

For additional information, please contact:

Andrey Shpak, Partner, Tax Consulting/ Tax Litigation, Goltsblat BLP,
T: +7 (495) 287 44 44,
E: info@gblplaw.com  

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