On 26 April 2022, the Ministry of Finance and Federal Tax Service (FTS) published a Guidance Letter 03-12-12/1/37761 clarifying the criteria for qualifying transactions as controlled for transfer pricing purposes. The letter states that taxpayers must report to the tax authorities all controlled transactions listed in Article 105.14 carried out in a calendar year. Article 105.14, Section 1(3), also classified some transactions as controlled for transfer pricing purposes.
Transactions listed under 105.14, Section 1(3) are recognized as controlled if the amount of income from such transactions with a person(s) in a calendar year exceeds the established threshold, which recently increased from RUB 60 million to RUB 120 million by Federal Law No. 67-FZ of 26 March 2022. The letter clarifies that the increased threshold applies to transactions, income, and/or expenses recognized in the calculation of the corporate tax base from 2022, regardless of the date of completion of the corresponding contract.
