All foreign organizations operating in the Russian Federation, whether through a branch or representative office, must submit an annual report on their activities.
2020’s report must be submitted no later than March 29, 2021, and contain the following information:
- The activities of a foreign organization.
- The settlement and current accounts of a foreign company in authorized banks of the Russian Federation.
- The accounting and tax records system.
- The interest paid to related parties on debt obligations.
- The financing of a representative office of a foreign company (if any).
It is necessary to submit a report to the tax authority for each permanent representative office of a foreign organization in the Russian Federation at its location. The report must be submitted in paper form as there is no electronic form provided.
New Law: Registration of Users of Corporate Mobile Communication
From June 1, 2021, a new law comes into effect that prohibits companies from giving employees corporate mobile communication devices without first recording information about them in the Unified System of Identification and Authentication (USIA).
According to the amendment, when entering into a contract for the provision of mobile communication services, it is possible to use this service only if the federal USIA contains information about:
- The mobile communication user, who, in this case, is an employee of the organization.
- The subscriber number used.
- The name of the subscriber – a legal entity.
Communications operators will carry out control over the availability of the above data in the USIA by sending a request to the specified system before providing services. If the check reveals that the information in the system is missing or inaccurate, then the provision of communication services for a specific subscriber number will be refused. The operator is obliged to inform the subscriber about this decision. If the subscriber does not provide feedback on the received notification, the operator will exclude the corresponding subscriber number from the contract.
If the contract for the communication service was concluded before June 1 of the current year, the companies need to enter the relevant data in the USIA by November 30 of the same year. Communications operators will start performing data control duties in the system from December 1, 2021.
The requirement to use corporate mobile communication by employees will depend on the performance of their job duties and obligations.
The procedure for using the communication should be fixed in the company’s internal documents such as internal policies and procedures, regulations on official mobile communication and should be read and signed by the employees.
The costs for the communication service can be taken into account for profit taxation purposes if the following supporting documents are available:
- Approved list of positions of employees who need mobile communication.
- Contract with the communications operator.
- Invoice for services rendered.
- Document confirming payment for the services of the communications operator.