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Amendments to Russian CFC rules were prepared by the Ministry of Finance

DATE: September 27, 2017 | AUTHOR: atlawyers

Proposed amendments exclude income and losses from transactions with financial assets (including securities) from CFC profit calculation. The Ministry introduces new rules on calculation of a CFC’s financial loss for three financial years preceding 2015. Such loss is calculated as a total amount of  losses and profits for the relevant 3 years in accordance with CFC’s financial statements (without adjustments for securities fair value reassessment, impairment, etc.). A list of cases when Russia shall not be recognized as a place of effective management of a foreign company has been clarified.

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