Over the past year, Parliament has adopted several laws amending
the Tax Code regarding the taxation of legal entities. This article
examines the most significant tax innovations expected in the
corporate sector in 2020.
Corporate income tax
The Multilateral Convention to Implement Tax Treaty-Related
Measures to Prevent Base Erosion and Profit Shifting will take
effect from 1 January 2020, after which Russian companies will make
payments taxed at the source of income (eg, interest, dividends and
royalties). As a result, a number of Russian taxpayers may
encounter difficulties in applying the benefits established by the
double tax avoidance agreements that Russia has concluded with
several countries. The convention establishes a number of
additional provisions that tighten the rules of the relevant
bilateral agreements – in particular, with regard to
permanent representation, the taxation of dividends and income
derived from the sale of real property assets and the
