FEDERAL LAW OF THE RUSSIAN FEDERATION

of December 28, 2017 No. 436-FZ

About modification of parts the first and second Tax Code of the Russian Federation and separate legal acts of the Russian Federation

Accepted by the State Duma on December 21, 2017

Approved by the Federation Council on December 26, 2017

Article 1

Bring in part one of the Tax Code of the Russian Federation (The Russian Federation Code, 1998, No. 31, Art. 3824; 2011, No. 30, Art. 4575; 2014, No. 48, Art. 6657; 2015, No. 24, Art. 3377; 2016, No. 7, Art. 920) following changes:

1) in Article 25.13-1:

a) to state the subitem 7 of Item 1 in the following edition:

"7) she participates in the projects on mining performed according to production sharing agreements, concessionary agreements, license agreements or other agreements (contracts) on the terms of risk.

The profit of the controlled foreign companies specified in this subitem is exempted from the taxation in case of simultaneous observance of all following conditions:

the foreign organization is the party of agreements (contracts) specified in paragraph one of this subitem, or creation of the foreign organization is provided by these agreements (contracts) and it performs activities for mining only on the basis and in accordance with the terms of the specified agreements (contracts);

agreements (contracts) specified in paragraph one of this subitem are signed with the state (territory), the government of the relevant state (territory) or with the institutes (public authorities, state-owned companies) authorized by this government or activities within such agreements (contracts) are performed based on the license to use by the subsoil plot (other similar permission issued by authorized body of such state);

the share of income gained from participation in agreements (contracts) specified in paragraph one of this subitem for the period for which according to the personal law of the foreign organization the financial reporting for financial year is created constitutes at least 90 percent of total amount of the income of such organization for data of its financial reporting for the specified period or the income at such organization for the specified period are absent;";

b) in Item 2:

the fifth subitem 1 to add the paragraph with words "if other is not provided by the subitem 3 presents of Item";

add with the subitem 3 following of content:

"3) if the controlled foreign company is part of the consolidated group of taxpayers created according to the legislation of foreign state or according to the personal law determines tax base for calculation and payment of tax amount from the income (arrived) together with other persons (except as specified if in case of determination of tax base the tax amount from the income (profit) estimated directly concerning profit of this controlled foreign company is determined in its tax statements), without creating the consolidated group of taxpayers (further in this Code - the foreign consolidated group of taxpayers), the indicator of N for such controlled foreign company is determined by the taxpayer as part of the tax amount estimated concerning the corresponding foreign consolidated group of taxpayers. At the same time the specified part of tax amount is calculated according to the procedure, established by such taxpayer independently in accounting policy for the purposes of the taxation concerning each foreign consolidated group of taxpayers, based on indicators of the financial reporting of the controlled foreign company or aggregative financial performance for the consolidated group of taxpayers according to one of the following methods:

in proportion to share of revenue (income) of the controlled foreign company in consolidated revenues (income) of the foreign consolidated group of taxpayers;

in proportion to profit share to the taxation of the controlled foreign company in comprehensive income to the taxation of members of the foreign consolidated group of the taxpayers who did not have for the corresponding period of loss;

in proportion to share of net assets of the controlled foreign company in total net assets of the foreign consolidated group of taxpayers.

Change of method of measure definition of N according to this subitem is allowed not more often than once in 10 years.";

c) add Item 9 with the paragraph of the following content:

"The taxpayer - the controlling person has the right not to submit the documents provided by this Item if such documents were submitted by other taxpayer - the controlling person of this controlled foreign company being the Russian organization through which indirect participation of the taxpayer using the right provided by this paragraph in such controlled foreign company is realized. The taxpayer - the controlling person can use such right on condition of specifying by it in the notification on the controlled foreign companies represented according to Item 2 of Article 25.14 of this Code, data on the organization which submitted the documents provided by this Item.";

The subitem 10 of Item 6 of Article 25.14 to state 2) in the following edition:

"10) the description of the bases for release of profit of the controlled foreign company on the taxation according to this Code.

If the taxpayer used the right not to submit documents, stipulated in Item the 9th Article 25.13-1 of this Code, in the notification on the controlled foreign companies in case of disclosure of information provided by the subitem 8 of this Item, information on the taxpayer - the controlling person being the Russian organization through which indirect participation of the taxpayer in the controlled foreign company is realized who submitted documents, stipulated in Item the 9th Article 25.13-1 of this Code is reflected.";

3) in Article 25.15:

a) in the paragraph the second item 4 of the word "does not reflect such result" shall be replaced with words "has the right not to reflect such result and data on such controlled foreign company";

b) to add Item 8 after the words "on increase in the authorized capital" with the words "and (or) forming of required reserves if the obligation on forming of such reserves is stipulated by the legislation foreign state";

4) in Article 105.3:

a) in the paragraph the second Item 1 the second offer to state in the following edition: "Provisions of this paragraph are not applied in cases if the taxpayer applies symmetric adjustment according to the Section V.1 of this Code, and also in the cases provided by the agreement on pricing for the purposes of the taxation signed according to Item 2 or paragraph one of Item 3 of Article 105.20 of this Code.";

b) to add the subitem 1 of item 4 with words ", except for the part of the income tax of the organizations estimated concerning profit of the controlled foreign companies";

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