Income tax is “for reduction" over 10 million roubles-- inspections will inform the Federal Tax Service

The Federal Tax Service of Russia has issued a letter addressed to regional tax inspections No. VD-4-1/13447@ dated 20.08.2021.

Information on income tax declarations of the inspectorate will have to be transferred to the Federal Tax Service and the executive authorities of the subject of the Russian Federation, but only on those declarations in which the tax is “for reduction” in the amount of more than 10 million roubles, credited to the regional budget.

Below is a quote from the letter: “The interregional inspections of the Federal Tax Service of Russia for the largest taxpayers, when receiving from taxpayers tax returns on corporate income tax “for reduction” in the amount of more than 10 million roubles to the consolidated budget of the subject of the Russian Federation, inform the relevant regional Department of the Federal Tax Service of Russia, as well as the executive authorities of the subject of the Russian Federation, including financial authorities, within five days from the date of receipt.

For the purposes of this letter (paragraphs 1 and 2 of the letter), the declaration on corporate income tax submitted “for reduction” in the amount of more than 10 million roubles to the consolidated budget of the subject of the Russian Federation means the following:

– the primary declaration on corporate income tax submitted “for reduction” (the amount of tax is indicated on line 080 of section 1 of the declaration);

– an updated declaration reducing the previously accrued amount “to be paid” (the amount of tax is indicated on line 070 of section 1 of the declaration), “for reduction” (the amount of tax is indicated on line 080 of section 1 of the declaration).