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Russian official suggest postponing tax residency definition

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Russia’s Sberbank registers with US tax ruler to comply with FATCA

MOSCOW, June 24. /ITAR-TASS/. Introducing a tax residency definition at the start of de-offshorizing measures in Russia will be too difficult from a technical point of view, and postponing the step would be reasonable, Bella Panina, deputy director of the Economic Development Ministry’s investment policies and development department, said Tuesday.

“The tax residency definition mechanism will only worry the business without necessity, and it will not work without a mechanism for a tax information exchange,” Panina said.

The ministry earlier published a statement where it supported the idea of an economic amnesty, or penalty-free registration of property held by offshore companies, in 2015.

Other anti-offshore steps proposed by the government earlier were to make Russian taxpayers, owning at least 1% in an offshore company, report to the Russian tax authorities, and to prohibit granting state guarantees to off-shore firms.

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