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Ministry of Finance Proposes Controlling Foreign Companies’ Beneficiaries


The Russian Ministry of Finance has prepared and sent an amendment to Article 7 of the Tax Code to the Department of Justice. If it is passed, the amendment will establish that an individual or organization is still considered an actual recipient of income even if they are not a tax resident of a nation which has a double taxation treaty with Russia. The norms and regulations of the agreement don’t extend to the established individuals or organizations and the income they receive. In other words, it will be the Tax Code of the Russian Federation that will be applied, and not the conditions of the agreement itself.

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