FEDERAL LAW OF THE RUSSIAN FEDERATION

of February 15, 2016 No. 32-FZ

About modification of parts the first and second the Tax Code of the Russian Federation and in the Federal Law "About Modification of Parts the First and Second the Tax Code of the Russian Federation (regarding the Taxation of Profit of the Controlled Foreign Companies and the Income of the Foreign Organizations)"

Accepted by the State Duma on January 29, 2016

Approved by the Federation Council on February 10, 2016

Article 1

Bring in part one of the Tax Code of the Russian Federation (The Russian Federation Code, 1998, No. 31, Art. 3824; 1999, No. 28, Art. 3487; 2003, No. 23, Art. 2174; No. 52, Art. 5037; 2004, No. 27, Art. 2711, No. 31, Art. 3231; 2005, No. 45, Art. 4585; 2006, No. 31, Art. 3436; 2007, No. 1, Art. 31; No. 22, Art. 2564; 2008, No. 30, Art. 3616; 2010, No. 31, Art. 4198, No. 32, Art. 4298; No. 40, Art. 4969, No. 48, Art. 6247; 2011, No. 27, Art. 3873; No. 30, Art. 4575, Art. 4593, No. 47, Art. 6611, No. 49, Art. 7014; 2012, No. 26, Art. 3447, No. 27, Art. 3588; 2013, No. 23, Art. 2866; No. 26, Art. 3207, No. 30, Art. 4049, 4081; No. 40, Art. 5037; 5038; No. 44, Art. 5645; 2014, No. 14, Art. 1544, No. 45, Art. 6157, Art. 6158, No. 48, Art. 6657; 6660; 2015, No. 24, Art. 3377) following changes:

Item 2 of Article 7 to state 1) in the following edition:

"2. Person having the actual right to the income for the purpose of of this Code person (foreign structure without formation of legal entity) who owing to direct and (or) indirect participation in the organization, control over the organization (foreign structure without formation of legal entity) or owing to other circumstances has the right independently to use and dispose of income gained by this organization is recognized (foreign structure without formation of legal entity).

Person having the actual right to the income for the purpose of of this Code person (foreign structure without formation of legal entity) is also recognized for the benefit of whom the other person (other foreign structure without formation of legal entity) is competent to dispose of income gained by the organization (foreign structure without formation of legal entity) specified in paragraph one of this Item or direct such other person (other foreign structure without formation of legal entity).

In case of determination of person having the actual right to the income the functions which are carried out by persons specified in this Item (foreign structures without formation of legal entity), and also the risks accepted by them are considered.";

2) in Article 23:

a) in the subitem 2 of Item 3.1 of the word", and also about control over them or the actual right to income gained by such structure (including cases when the taxpayer acts as the founder of such structure or person having the actual right to the income (profit) of such structure in case of its distribution)" to exclude;

b) in paragraph one of Item 3.2 of the word "having property" shall be replaced with words "having real estate on the property right";

c) add with Item 3.3 of the following content:

"3.3. The obligations of taxpayers provided by subitems 1 and 2 of Item 3.1 of this Article extend to the persons recognized according to this Code tax residents of the Russian Federation and performing property trust management if such persons bring the property which is object of trust management in the capital of the foreign organization or transfer this property to the foreign structures founded by them without formation of legal entity.";

d) add with Item 8 of the following content:

"8. The obligations of taxpayers (tax agents) established by this Article extend also to the foreign organizations which independently recognized themselves as tax residents of the Russian Federation according to part two of this Code.";

Item 14 of Article 25.13 to state 3) in the following edition:

"14. Recognition of managing person of foreign investment fund (share fund or other form of implementation of collective investments) by the tax resident of the Russian Federation, and equally in the fact of implementation by such managing person of activities for asset management of such fund (company) in the territory of the Russian Federation in itself are not the bases for recognition of this fund (company) by the controlled foreign company for which the specified managing person is controlling.

For the purposes of this Item managing persons of foreign investment fund (share fund or other form of implementation of collective investments) are recognized the managing company which is the Russian or foreign organization, the managing partner who is the physical person or the organization, and also the other persons performing functions on asset management directly or indirectly belonging to such foreign investment fund (share fund or other form of implementation of collective investments).";

4) in Article 25.13-1:

a) in Item 1:

in paragraph one shall be replaced with words the word of "organization" "the controlled foreign company";

third subitem 6 to declare the paragraph invalid;

subitem 7 in paragraph one "foreign" to exclude the word;

b) in paragraph one of Item 3 of the word "subitems 1 - the 12th item 4 of Article 309.1" shall be replaced with words "item 4 of Article 309.1";

c) in Item 5:

in subitem 1 of the word "subitems 1 - the 12th item 4 of Article 309.1" shall be replaced with words "item 4 of Article 309.1";

in subitem 2 of the word "subitems 1 - the 12th item 4 of Article 309.1" shall be replaced with words "item 4 of Article 309.1";

in subitem 3 of the word "subitems 1 - the 12th item 4 of Article 309.1" shall be replaced with words "item 4 of Article 309.1";

d) in Item 6:

in subitem 1 of the word "subitems 1 - the 12th item 4 of Article 309.1" shall be replaced with words "item 4 of Article 309.1";

in subitem 2 of the word "subitems 1 - the 12th item 4 of Article 309.1" shall be replaced with words "item 4 of Article 309.1";

e) add with Item 6.1 of the following content:

"6.1. In case of determination of the share of the income specified in Items 3, 5 and 6 these Articles the income in type of exchange difference recognized in case of creation of the financial reporting of the controlled foreign company, and also the income specified in Item 3 of Article 309.1 of this Code are not considered.";

e) in the paragraph the second Item 9 of the word "stipulated in Item 3 articles 25.14 of this Code" shall be replaced with words "stipulated in Item 2 Articles 25.14 of this Code";

g) state Item 10 in the following edition:

"10. The profit of the controlled foreign companies specified in the subitem 6 of Item 1 of this Article is exempted from the taxation on condition of simultaneous observance of all following requirements to such companies, circulating bonds and debt obligations which arose in connection with placement of such circulating bonds:

1) the circulating bonds specified in the subitem 6 of Item 1 of this Article meet the requirements established to such bonds by the subitem 1 of Item 2.1 of article 310 of this Code;

2) debt obligations of the Russian and foreign organizations before the foreign organizations specified in the subitem 6 of Item 1 of this Article arose in connection with placement of the circulating bonds specified in the subitem of 1 this Item that is confirmed at least by one of the following documents:

the agreement which draws up the corresponding debt obligation;

conditions of release of the corresponding circulating bonds;

prospectus of the issue of the corresponding circulating bonds;

3) the foreign organizations specified in the subitem 6 of Item 1 of this Article have the permanent location in the states with which the Russian Federation has the international agreements regulating the tax matters of the income of the organizations and physical persons;

4) the share of the interest expenses according to the circulating bonds specified in the subitem 6 of Item 1 of this Article performed for the period for which according to the personal law of the foreign organization the financial reporting for financial year is constituted constitutes at least 90 percent in the amount of all expenses of such organization for data of its financial reporting for the specified period.";

5) in Article 25.14:

a) state the name in the following edition:

"Article 25.14. Notification on participation in the foreign organizations and notification on the controlled foreign companies. Procedure for recognition of taxpayers by the controlling persons";

b) state Items 2 and 3 in the following edition:

"2. The notification on the controlled foreign companies is submitted no later than March 20 of the year following tax period which the controlling person the income in type of profit of the controlled foreign company according to Chapter 23 or 25 of this Code is recognized in time.

3. The notification on participation in the foreign organizations (about organization of foreign structures without formation of legal entity) (further in this Code - the notification on participation in the foreign organizations) is submitted no later than three months from the date of emergence (change of share) of the participation in such foreign organization (dates of organization of foreign structure without formation of legal entity) which is the basis for submission of such notification in time if other is not provided by this Item.

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