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Duma Amends FCE Taxation

29.01.2016 17:30 / TASS

The State Duma has passed in the third reading amendments to the Tax Code, improving foreign controlled enterprises (FCE) profit taxation and foreign enterprise income taxation.

Amendments to the Russian Tax Code detail the rules for FCE profit tax calculation, prevent double taxation of dividends, and prolong FCE liquidation timeline.

The new law prolongs the notification period for taxpayer’s participation in foreign enterprises from one month to three months starting from the date of assuming partial ownership of a foreign enterprise.

Duma Budget and Tax Committee Chairman Andrey Makarov told the press earlier that the need for Tax Code amendments was the result of analyzing the application of anti-offshore law enacted in Russian in January 2015, and has been driven by the need to ‘block tax base drain’.

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