Author: Maria Plotnikova
Attorney, Family Office
General Information
Before reading this article you may wish to learn more about what constitutes a CFC and a person controlling a CFC by following the link below:
What is a Notification of Commencement of Participation in a CFC
A notification of commencement of participation in a CFC is the submission of information to the Federal Tax Service (FTS) about a CFC for which annual financial statements will be submitted and profit tax calculated going forward.
Who is required to submit and by what deadlines
Who submits — Russian tax residents controlling a CFC
Submission deadline — within 3 months from the date of commencement of participation in the CFC
The commencement date may include:
- Date of company incorporation
- Date of registration of share transfer
Penalties
Penalty of 50,000 RUB
- for failure to submit the notification
- for late submission of the notification
- for submission of inaccurate information
Penalties apply to each individual CFC.
For example, if you fail to submit a notification of commencement of participation in 3 CFCs, a separate penalty will be imposed for each.
Methods of Submitting a CFC Notification
Online submission through the taxpayer's personal account
A detailed guide is available at the link below:
Notification of Commencement of Participation in a CFC via Taxpayer AccountSubmission of the notification in person at the FTS
- Fill out and print the notification of commencement of participation in a CFC in two copies
- Appear in person at the FTS office at the place of registration
- Submit the set of documents
- Receive one copy of the notification of commencement of participation in a CFC with a receipt stamp from the FTS
Submission by postal mail
- Fill out and print the notification of commencement of participation in a CFC in two copies
- Send the notification to the FTS address by registered mail with an inventory of enclosures
- Receive a copy of the notification of commencement of participation in a CFC with a receipt stamp from the FTS
private.law can assist you in submitting a notification of commencement of participation in a CFC for US$250.
Contact Information
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