POST Online Media Lite Edition


Russia to sign multilateral agreement on automatic exchange of tax reports

Staff Writer |
The Russian Federal Tax Service is to sign the Multilateral Competent Authority agreement on the Exchange of Country-by-Country Reports of January 27, 2016.

Article continues below

On July 1, 2015, the Convention on Mutual Administrative Assistance in Tax Matters (hereinafter referred to as the Convention) came into force in regard to Russia. The Convention lets parties automatically exchange information on tax matters.

The exchange of country-by country reports requires, according to the Convention, the signing of a separate agreement between the competent authorities of the parties.

The implementation of the agreement in practice means that the exchange of country-by-country reports will be based on the CbC Reporting Standard developed by the OECD, which sets the content and technical details of the information exchange procedure.

The signed agreement requires amendments to the Russian Tax Code concerning the creation of a mechanism for obtaining information by Russia’s Federal Tax Service, which is necessary to exchange information with the competent foreign authorities as part of Russia’s fulfillment of the agreement.

Russia’s joining the agreement will enable the Russian tax authorities to automatically receive from competent foreign authorities information on the allocation of income between members of multinational enterprise groups, which is necessary to assess the risks related to tax base erosion and profit shifting from Russia. The information obtained will increase the efficiency of tax oversight of prices in cross-border transactions.

What to read next

Seven more jurisdictions sign tax co-operation agreement
Jersey and Spain sign tax information exchange agreement
Switzerland and Argentina closer to deal on double taxation