BarentsNews.com

Tax Ministry of the Russian Federation issued the Order No. BG-3-09/325 of 18 June 2003 “On registration of foreign companies with tax authorities”.

According to the Order starting from 1 January 2005 identification numbers of taxpayers (INN) and codes of foreign companies (KIO), granted to foreign companies before 1 October 2003 shall be considered as invalid.

All documents confirming tax registration of foreign companies issued before 1 October 2003 shall be considered invalid as well starting from 1 January 2005. Within the period from 1 October 2003 till 31 December 2004 the tax authorities shall be obliged to exchange previously issued documents confirming tax registration.

It should be noted that Russian tax legislation provides a number of cases when foreign companies are obliged to register with tax authorities. Foreign companies are subject to tax registration if they conduct activities through branch or representative office in Russia or if they have real estate or transport on the territory of Russia.

Opening account in any Russian bank also constitutes a ground for tax registration. Foreign companies should be registered on the basis of notifications if they:
(a) conduct activity in Russia within a term of not more than 30 calendar days during a year;
(b) permanently represented in Russia through another company, e.g. on the basis of Contract;
(c) have movable property in Russia.

Sergei Mashkarenko.
Lawyer
Tel/Fax: +7812-174-59-50