The Federal Tax Service has approved the form for mandatory disclosure of ownership structures for foreign companies holding Russian real estate, to be filed by 30 March 2016
Legal Update No. 556
Goltsblat BLP reminds you that 30 March 2016 is the deadline for foreign companies holding Russian real estate to file the mandatory disclosure form.
The information needs to be disclosed in the statutory format approved by the Russian Federal Tax Service in January and officially published on 4 March 2016.
Failure to submit and even late submission of ownership structure information entail a fine of 100% of the property tax payable on real estate with an undisclosed ownership structure.
Fines can run into millions of dollars for owners of commercial real estate such as office buildings and shopping malls taxed on the basis of their cadastral value (as well as for foreign companies without a permanent establishment in Russia that pay tax on the basis of the cadastral value of all the Russian real estate they own).
Please note that the information to be disclosed is not limited to direct participants in a foreign legal entity holding Russian real estate.
If an individual or a public company directly or indirectly owns more than 5% of a foreign legal entity with title to Russian real estate, the full ownership structure with all indirect participations needs to be disclosed, including participations held via unincorporated structures and legal entities without participation in capital (such as trusts and foundations).
It is strongly advised to take immediate action to ensure proper compliance with the law.
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