Russia: Publishes the draft law on CbC reporting requirements for multinationals corporate groups

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The Russian government on 6 March 2017, published an amended draft law providing for new provisions on the international automatic exchange of financial accounting information for the Russian fiscal regulation and for setting new standards for the clearing price documentation for multinational corporations.

Main changes of the draft law are discussed below:

  • Applies to multinational group companies (MNE) with annual consolidated group revenue equal to or exceeding RUB 50 billion in the previous year. Regulations extend to subsidiary entities. If the parent entity is foreign, the local threshold should be used to determine if a Country-by-Country report (“CbC report”) is required.
  • If the ultimate parent entity of an MNE or an authorised member of an MNE compiles consolidated financial statements in a currency other than the currency of the Russian Federation, it should be converted into roubles.
  • Entities are required to notify the Russian tax authorities within 8 months (not three months as stated in the previous version of the draft law) from the end of the last fiscal year of the parent entity.
  • Provisions regarding penalties remain the same. Failure to provide the notification or the provision of incorrect information will result in a penalty of up to RUB 50,000 (penalty not applicable for 2017–2019). Failure to submit a CbC report when required or submission of incorrect information will lead to penalties of up to RUB 100,000 (penalty not applicable for 2017–2019). However, if the taxpayer identifies inaccuracies in the filed CbC report and submits a revised version before it is discovered by the tax authorities, this will exempt the taxpayer from sanctions.
  • The draft law emphasises the importance of consistency in the chosen approach to the use of information sources.
  • The deadline for CbC report submission remains the same: it must be filed no later than 12 months after the last day of the financial year of the MNE.

Master file and Local file:

  • According to the draft law, MNE groups are not required to file their master file and local file with tax authorities. These files shall be provided only upon demand of the Russian tax authorities.
  • Once a demand has been issued, the Russian member must provide the master file within three months from the date of the demand, or within 15 months from the end of the most recent financial year, whichever is later.


  • All information (CbC report, Master file, Local file) should be presented in Russian.

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