FTS sets new accreditation procedure for branches and rep offices of foreign commercial legal entities

OREANDA-NEWS. The Russian Federal Tax Service (FTS) has issued a number of orders, which took effect on 1 January 2015, regulating the accreditation procedure for branches and representative offices (RO) of foreign commercial legal entities (FLEs). These FTS orders are aimed at clarifying the new rules for accrediting the branches/ROs of FLEs set forth by Federal Law No. 106-FZ of 5 May 2014 “On the Introduction of Amendments to Specific Legislative Acts of the Russian Federation” as well as introducing a new accreditation procedure.

Jurisdiction over accreditation functions for most branches/ROs has been transferred to Moscow’s Interdistrict Tax Inspectorate No. 47 from the Chamber of Commerce and Industry of the Russian Federation (the “CCI”) and the State Registration Chamber.

Those branches/ROs with accreditation that does not expire before 1 April 2015 must register with the new State Register of Accredited Branches and Representative Offices of Foreign Legal Entities (the “Register”). Failure to do so will result in automatic termination of the non-complying branch/RO’s accreditation period, effective from 1 April 2015.

Branches/ROs must be accredited under the new procedure from 2 February 2015. The new legislative acts also stipulate the list of required documents, the digital formats for electronic filing applications, the grounds for terminating an accreditation, and other specific requirements for accrediting a branch or RO.

Before filing an application with the Inspectorate for accreditation or entry of a branch/RO in the Registerthe branch/RO must first undergo a mandatory procedure for agreeing the number of its foreign employees with the CCI.