FEDERAL LAW OF THE RUSSIAN FEDERATION

of November 24, 2014 No. 376-FZ

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 November 18, 2014

Approved by the Federation Council on November 19, 2014

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; 2002, No. 1, Art. 2; 2003, No. 22, Art. 2066; No. 27, Art. 2700; No. 52, Art. 5037; 2004, No. 27, Art. 2711; No. 31, Art. 3231; No. 45, Art. 4377; 2005, No. 45, Art. 4585; 2006, No. 31, Art. 3436; 2007, No. 1, Art. 31; No. 22, Art. 2563; 2008, No. 30, Art. 3616; No. 48, Art. 5519; 2009, No. 30, Art. 3739; No. 51, Art. 6155; 2010, No. 31, Art. 4198; No. 48, Art. 6247; No. 49, Art. 6420; 2011, No. 27, Art. 3873; No. 30, Art. 4575, 4593; No. 47, Art. 6611; No. 49, Art. 7014; 2012, No. 26, Art. 3447; No. 27, Art. 3588; 2013, No. 26, Art. 3207; No. 30, Art. 4081; No. 40, Art. 5037, 5038; No. 44, Art. 5640; 2014, No. 14, Art. 1544; No. 23, Art. 2924; No. 26, Art. 3404; No. 45, Art. 6157, 6158) following changes:

Article 7 to state 1) in the following edition:

"Article 7. The international agreements on the tax matters

1. If the international treaty of the Russian Federation containing the provisions concerning the taxation and charges establishes other rules and regulations than provided by this Code and regulatory legal acts adopted according to it about taxes and (or) charges, then rules and regulations of international treaties of the Russian Federation are applied.

2. Person having the actual right to the income for the purpose of of this Code and application of international treaties of the Russian Federation on the tax matters person who owing to direct and (or) indirect participation in the organization, or control over the organization, or owing to other circumstances has the right independently to use and dispose of this income, or person for the benefit of whom the other person is competent to dispose of such income is recognized. 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 and also the risks accepted by them are considered.

3. If the international treaty of the Russian Federation on the tax matters provides application of the lowered rates of tax or release from the taxation concerning the income from sources in the Russian Federation for the foreign persons having the actual right to this income for the purpose of application of this international treaty the foreign person is not recognized having the actual right to such income if it has limited powers concerning the order this income, performs concerning the specified income mediatorial functions for the benefit of the other person, without performing any other functions and without assuming any risks, directly or indirectly paying such income (fully or partially) to this other person who in case of direct receipt of such income from sources in the Russian Federation would not have the right to application of the provisions of the international treaty of the Russian Federation specified in this Item on the tax matters.

4. In case of payment of the income from sources in the Russian Federation to the foreign person whose permanent location is the state (territory) with which there is international treaty of the Russian Federation on the tax matters and not having the actual right to such income if the source of payment knows person having the actual right to such income (their part), the taxation of the paid income it is made in the following procedure:

1) if person having the actual right to the paid income (their part) is recognized according to this Code the tax resident of the Russian Federation, the taxation of the paid income (its part) is made according to provisions of the corresponding Chapters of part two of this Code for the taxpayers who are tax residents of the Russian Federation without deduction of the corresponding tax concerning the paid income (their part) at payment source on condition of informing tax authority in the place of registration of the organization - source of payment of the income according to the procedure, established by federal executive body, the representative for control and supervision in the field of taxes and fees;

2) if person having the actual right to the paid income (their part) is foreign person to who action of the international treaty of the Russian Federation on the tax matters extends, provisions of the specified international treaty of the Russian Federation are applied to person who has the actual right to the paid income (their part) according to the procedure provided by the international treaty of the Russian Federation.";

2) in Item 2 of Article 11:

a) add with new paragraphs the seventh - the ninth the following content:

"foreign structure without formation of legal entity - the organizational form created according to the legislation of foreign state (territory) without formation of legal entity (in particular, fund, partnership, partnership, trust, other form of implementation of collective investments and (or) trust management) which according to the personal law has the right to perform the activities directed to commercialization (profits) for the benefit of the participants (unitholders, principals or other persons) or other beneficiaries;

foreign financial intermediaries - the foreign stock exchanges and the foreign depositary and clearing organizations included in the list approved by the Central bank of the Russian Federation in coordination with the Ministry of Finance of the Russian Federation;

the public companies - the Russian and foreign organizations which are issuers of securities, which (or depositary receipts on which) underwent the procedure of listing and (or) were allowed to the address at one or several Russian exchanges having the corresponding license or the exchanges included in the list of foreign financial intermediaries;";

b) paragraphs of the seventh - to consider the twenty fourth respectively paragraphs the tenth - the twenty seventh;

Article 19 to add 3) with part three of the following content:

"In the cases provided by this Code, taxpayers foreign structures without formation of legal entity are recognized.";

4) in Article 23:

a) to state the subitem 2 of Item 2 in the following edition:

"2) about the participation in the Russian organizations (except as specified participations in economic partnerships and limited liability companies) if the share of direct participation exceeds 10 percent, - in time no later than one month from the date of the beginning of such participation;";

b) add with Items 3.1 and 3.2 of the following content:

"3.1. Taxpayers in addition to the obligations provided by Items 1 and 2 of this Article shall notify tax authority respectively in the organization location, the residence of physical person according to the procedure and terms, stipulated in Article 25.14 of this Code:

1) about the participation in the foreign organizations (if the share of such participation exceeds 10 percent). For the purpose of this subitem share in the foreign organization is determined according to the procedure, stipulated in Clause 105.2 of this Code;

2) about organization of foreign structures without formation of legal entity, 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);

3) about the controlled foreign companies concerning which they are the controlling faces.

3.2. The foreign organizations, and also the foreign structures without formation of legal entity having the property recognized by the taxation object according to Article 374 of this Code in addition to the obligations provided by this Article shall report in the cases and procedure provided by this Code in tax authority on the location of the real estate unit of the information about members of this foreign organization (for foreign structure without formation of legal entity - the information about her founders, beneficiaries and managing directors).

In the presence at the foreign organization (foreign structure without formation of legal entity) several objects of property specified in this Item, the message is submitted in tax authority in the location of one of property objects at the choice of this person.";

The Section II to add 5) with Chapter 3.4 of the following content:

"Chapter 3.4. The controlled foreign companies and the controlling persons

Article 25.13. The controlled foreign companies and the controlling persons

1. For the purpose of of this Code the controlled foreign company if other is not stipulated in Item the 7th this Article, the foreign organization meeting at the same time to all the following conditions is recognized:

1) the organization is not recognized the tax resident of the Russian Federation;

2) the controlling faces of the organization are the organizations and (or) physical persons recognized by tax residents of the Russian Federation.

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