General characteristics of subsidiaries of foreign organizations on the territory of the Russian Federation
A subsidiary company established for an indefinite period, and is a Resident of the Russian Federation. Therefore, a company fully lives according to the laws of the Russian Federation, and is little different from an ordinary Russian company. Including the tax liabilities of this type of organization carries the legislation of the Russian Federation.
- round seal;
- Bank account;
-Statute – as the Supreme law of the enterprise;
- agreement on the establishment or the decision on establishment, if the party in the singular
Documents required for the registration of subsidiaries of foreign organizations on the territory of the Russian Federation:
- The application for accreditation or the creation of subsidiaries, stating: the name of the company, time of occurrence, location, subject of activity, management bodies representing the company according to the Charter, the objectives of the open structural subdivisions in Russia, information on business relations with Russian partners and development prospects of cooperation.
- A letter of recommendation from the Russian partner. The extract from the trade register or its substitute document of registration of the foreign legal entity.
-The residents of the Russian Federation – 13% from sources in the territory of the Russian Federation
-Non-residents of the Russian Federation - 30% (with the exception of income received as dividends from equity participation in the activities of Russian organizations in respect of which the tax rate is 15%).
applies in the General case, when not applicable, the rates specified below (clause 1 of article 284):
-2% — to the Federal budget
-18% — is credited to the budget of constituent entities of the Russian Federation.
- 0% rate
• for medical and educational institutions (article 284 paragraph 1.1);
• for agricultural and fisheries producers, if they meet the criteria specified in article 346.2 p. 2.;
• dividends, receiving dividends if the organization has a stake in the Charter capital of the organization paying the dividends more than 50% (P3.1 article 284);
• bonds issued before 1997 (p.4.3 of article 284).
The rate of 9%
• for dividends received that do not come under the rate of 0% (P3.2 article 284);
• municipal securities issued before 2007 (p.4.2 article 284).
• dividends from foreign organizations (n.3.3 article 284);
• government securities issued after 2007 (p.4.1, page 284).
Rate of 10% and 20%
• apply for foreign companies (p. 2 article 284).
Rate 18% - basic.
This rate applies for exported goods. This rate suggests that foreign buyers VAT to his supplier is not paid. Respectively and the state enterprise does not pay VAT on the goods aimed for export. However, it should be noted that the VAT related to the costs, that is imposed on suppliers, such enterprise may submit to the deduction. That is, exporters are entitled to VAT refund from the budget.
In order to apply the rate 0%, the organization shall within six months from the date of export of the goods to confirm their right to such a VAT rate, giving the tax office the documents confirming export (article 165 of the tax code).
Rate of 10%.
This rate applies to socially important goods, a list of these products listed in article 164 paragraph 2 of the tax code includes a number of food and medical goods, goods for children, as well as some print production. The list is quite extensive, and it is better to meet him directly in the tax code, download tax code you can also on this website.
It must be borne in mind that in accordance with subparagraph 14 paragraph 3 article 346.12 of the tax code are not entitled to apply the simplified taxation system organizations, in which the share of direct participation of other organisations makes more than 25 percent.
This restriction does not apply to organizations whose authorized capital fully consists of contributions of public organisations of invalids if average number of invalids among their workers makes not less than 50 percent, and their share in payment Fund - not less than 25 percent.
A subsidiary of a foreign organization on the territory of the Russian Federation carries out accounting in accordance with the legislation of the Russian Federation. Consolidated statements is/is complementary to the head(parent) organization.
Transactions one party of which is the person, place of registration or place of residence or place of tax residence which are state or territory included in percentreuters and territories approved by the Ministry of Finance of the Russian Federation in accordance with the PP. 1 clause 3 article 284 tax code of the Russian Federation are deemed to be controlled if the amount of income for this type of transactions in the corresponding calendar year exceeds 60 million rubles
Liquidation of subsidiaries
The company may be liquidated voluntarily in the order established by the Civil code of the Russian Federation, subject to the requirements of the Federal law "On joint stock companies" and the Charter companies. The company may also be liquidated by a court decision.
Liquidation of a legal entity entails its termination without transfer of rights and obligations in succession to other persons. In accordance with article 61 of the Civil code a legal entity may be liquidated:
– by decision of its founders (participants) or body of the legal entity, authorized by the constituent documents including in connection with the expiration of the term for which the legal entity was incorporated, with the achievement of the purpose for which it was created;
– according to the court decision in the case of violations committed during the gross violations of the law, if these violations are fatal in nature, or carry out activities without proper authorization (license), or prohibited by law, or in violation of the Constitution of the Russian Federation, or with other repeated or gross violations of law or other legal acts, or the systematic implementation of a non-profit organization, including public or religious organization (Association), charitable or other Fund, the activity contradicting its Charter purposes, and in other cases stipulated by the Civil code of the Russian Federation.