MAJOR PROFITS TAX AMENDMENTS FOR FOREIGN ENTITIES
A new instruction "On the profit and income taxation of foreign legal entities" ("Instruction 34") came into force on 28 July 1995, the date of its official publication. The instruction makes a number of potentially significant changes to the taxation regime as it applies to foreign legal entities operating in Russia. Clarification is currently being sought from the authorities on some of the issues raised and when this is received further Tax Alerts will be issued. This Tax Alert concerns two major points which may require immediate attention:
the issue of Taxpayer Identification Numbers ("TIN") to representative offices of foreign companies, and the requirement that branches of foreign companies register with the Moscow Tax Office
new tax accounting requirements for branches and representative offices of foreign legal entities operating in Russia.
