Which payment amounts between individuals can draw attention of the tax authorities?

Monetary assets operations or other properties operations are to be controlled if the amount of these operations is equal or exceeds 600 000 rubles or equal to the same amount in foreign currency or exceeds it. In character such operation refers to one of the following operations: - cash monetary assets operations; - crediting or transfer of monetary resources to an account, arrangement or receipt of a credit (loan), securities transactions if the individual has the registration, place of residence or location in the country (on the territory) which does not follow the recommendations of Financial Action Task Force (FATF), or if the mentioned operations are arranged via the bank account registered in such country (on such territory). - bank accounts operations (deposits); - other transactions with the movable estates (article 6 of the Federal Law “Concerning the Counteraction of the Legitimization of the Proceeds of Crime and the Financing of Terrorism № 115-FZ dated 07.08.2001.).

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What types of offshore exist?

Offshore territories can be divided for convenience into three types: - Offshore territories where the registered companies pay taxes at extremely low rates. The activities of such companies are controlled by supervisory authorities, and they are obliged to maintain accounting records and also to provide annual auditor’s report concerning authenticity of balance sheet; - Offshore territories where the registered companies don’t pay taxes but pay the fee for registration. In this regard the enterprises are obliged to maintain accounting records and drawing up statements. The activities of such companies by supervisory authorities are practically not controlled; - Offshore territories where the registered companies pay the specified annual duty, in this regard they are not obliged to maintain accounting and their activities are not controlled at all.

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What countries include offshore?

The list contains such states as Anguilla; the Commonwealth of the Bahamas; Belize; the Bermudas; the British Virgin Islands; Gibraltar; the Commonwealth of Dominica; the Republic of Cyprus; the Republic of Maldives; the Republic of Malta; separate administrative units of the United Kingdom of Great Britain and Northern Ireland: Isle of Man; the Channel Islands (islands: Guernsey, Jersey, Sark, Alderney); the Republic of Seychelles and others. 　　 ©Professional consultation of the “RosCo” company

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What does an “offshore company” mean?

Offshore company means a company not conducting economic activity in the country of its registration and the owners of these companies are non-residents of these countries. The main peculiarity of offshore companies is the fact that existence of the company in the country of registration is considered to be nominal.

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What does an “offshore” mean?

The term “offshore territory” means a state or territory provided preferential tax treatment and (or) not provided disclosure and provision of information while carrying out financial operations. Offshore territories are used as an instrument of evasion from tax payment and money laundering obtained illegally.

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Who controls operations with offshore territories?

In Russia the organizations carrying out accounts with use of offshore companies are controlled not only by tax authorities, but also by the Bank of Russia and Federal Financial Monitoring Service. At international level the Organization for Economic Cooperation and Development plays an important role in counteraction of unfair tax competition. At the present time this organization includes 34 states which present almost all large industrially developed countries. In addition the Financial Action Task Force on Money-Laundering (FATF) was formed at the meeting of “Big seven” in Paris in 1989.

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What tax benefits are provided for foreign companies carrying out their activity within the territory of the Russian Federation?

Taxation of legal entities whose founders are considered to be foreign organizations is carried out in accordance with the requirements of the Tax Code of the Russian Federation in the procedure analogous to taxation of income of legal entities whose founders are considered to be Russian organizations and citizens. The only difference in taxation for a foreign founder shall be the situation connected with payment of dividends. So, owners – Russian organizations or individual persons – tax residents shall pay the tax at the rate of 9%, foreign citizens or foreign companies – 15%, unless otherwise specified by international contracts. Benefits on VAT in the part of premises lease are provided for branches and representative offices of foreign companies.

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