In accordance with new Federal Law No. 226-FZ of 28 June 2022 “On Amending the Federal Law “On Protection and Promotion of Investment in the Russian Federation,” the investment protection and promotion agreement (IPPA) should stipulate the obligation of the organization implementing the project to switch to tax control in the form of tax monitoring within three years of the date of the IPPA.
In addition, amendments have been made to the Tax Code of the Russian Federation (under Federal Law No. 225-FZ of 28 June 2022 “On Amending Parts One and Two of the Tax Code of the Russian Federation”), namely:
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Threshold criteria for joining the tax monitoring regime have been abolished for IPPA participants.
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For an IPPA participant, tax monitoring also entails a review of the actual costs for which state support measures are offered.
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During the first year of tax monitoring, the taxpayer participating in an IPPA should provide access to documents confirming actual costs through the taxpayer’s information system.
Thus, IPPA participants now face new challenges, in particular:
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to assess the compliance of the current automation of tax accounting and the internal control system (ICS) with the requirements of the Federal Tax Service of Russia in terms of joining the tax monitoring regime;
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to develop (formalize) the ICS in line with the requirements of the Federal Tax Service of Russia for tax monitoring participants;
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to prepare a set of documents to be submitted together with the application to join the tax monitoring program;
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to develop and implement an information system to ensure information exchange between the taxpayer and the tax authority and to ensure the integration of this system with the Automated Information System (AIS) Nalog-3 (Tax-3).
Kept specialists can support you at all stages of preparing to join the tax monitoring regime, specifically:
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assess your readiness to participate in the tax monitoring program and develop a step-by-step plan of actions necessary to ensure compliance with the requirements of the Federal Tax Service of Russia for tax monitoring participants;
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formalize the ICS in line with the requirements of the Federal Tax Service of Russia and prepare documents required to join the regime;
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develop and implement an information system for interaction between the taxpayer and the tax authority and integrate the system with AIS Nalog-3, etc.
We would be happy to discuss the stages of joining the tax monitoring regime in more detail, share our practical experience and answer all your questions.
See the pdf file for more details and contacts of Kept experts.
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