We remind you that a foreign organization must submit to the Russian (tax agent) not only a residence document, but also a document confirming the actual right to income.
The letter of the Federal Tax Service of the Ministry of Finance of the Russian Federation dated June 22, 2021 No. 03-08-05/49013 defined a new procedure for determining the actual recipient of income for the purposes of applying reduced rates established by international treaties of the Russian Federation on taxation.
In accordance with paragraph 1 of Article 312 of the Tax Code of the Russian Federation, if a tax agent paying income is provided with proof of residency and confirmation of the actual right to receive income before the date of its transfer, and an international agreement of the Russian Federation provides for a preferential tax regime in the Russian Federation for such income, this is a reason to exempt income from withholding tax at the source of payment or withholding tax at the source of payment at reduced rates.
In other words, the letter indicates the fact that now, when paying income to foreign companies, not only proof of residency is required, but also a document confirming the right to receive income.
Regarding the document confirming the existence of the actual right to receive income, we inform you that the form of the document itself (as well as the list of documents) is not established by law (Letter of the Federal Tax Service of the Ministry of Finance of the Russian Federation No. 03-08-05/49013 of 22.06.2021; Letter of the Ministry of Finance of the Russian Federation No. 030805/92537 of 19.12.2018). These letters state that, along with other documents (information), written confirmations of the beneficial owner status of a foreign organization in relation to income from a Russian source in the form of a letter signed by the directors of a foreign organization can be accepted as evidence of the actual right of a foreign recipient to the income received.
We recommend that when paying income to foreign companies as a tax agent, you receive confirmation from a foreign organization that this company has the actual right to receive the corresponding income.
LLC “Sterngoff Audit” will be happy to answer all your questions on this topic, just write a letter to info@sterngoff.com and get feedback as soon as possible.
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