The Russian State Duma adopted in the final reading the draft law implementing international automatic exchange of financial accounting information and transfer pricing (TP) documentation of multinational Groups of Companies on 16 November 2017. Before being enacted, the draft law needs to be additionally approved by the Federal Council and then signed by the President.
The draft law include following changes:
- Transfer pricing documentation requirements would come into force from the day of its official publication (financial years commencing on or after 1 January 2017 rather than the previous version, which stated financial years commencing on or after 1 January 2018). An exception is made for the BEPS Action 13 Local file, which should be required only for fiscal (calendar) years starting from 2018.
- There are a number of changes made regarding the information that should be presented in the notification.
- A number of clarifying provisions have been added with regard to the CbC reporting.
- Essential criteria for the purposes of the TP documentation are included. Only substantive agreements between group members, substantive contracts and substantive transactions must be disclosed.
- The Master file requirements have now been more aligned with the OECD Guidelines.
- As regards to the content of the Local file, the provisions have remained largely unchanged. The main changes concern the periods starting from which the Local file may be required – now for fiscal (calendar) years, starting from 2018.
- By the first filing deadline of the CbC reporting, Russia must have its laws in place to require CbC reporting. This condition is likely to be met in Russia by 31 December 2017 assuming the law is enacted shortly.
- Penalty provisions have remained unchanged.
