Tax monitoring services

Joining the tax monitoring regime is a promising area of cooperation between businesses and the tax authorities. This form of tax control is based on the principles of mutually beneficial cooperation, trust and transparency.

The tax monitoring regime has been developed by the Federal Tax Service of Russia based on international experience and the OECD recommendations. This regime allows companies to:

obtain an exemption from "traditional" tax audits and fines
automate dealings with their tax office and reduce the costs of document exchange with the tax office
it also provides an opportunity to obtain explanations on the application of tax laws in specific situations

In return, the company needs to ensure full transparency and access to accounting data.

The Federal Tax Service of Russia is actively developing the tax monitoring regime, and the number of participants in the regime is growing every year. Starting from 2023, the tax authorities plan to perform tax monitoring of 448 companies. In 2022, the number of participants grew by 32%.

Prerequisites for participation in tax monitoring

The tax monitoring regime is available only for large and some medium-sized companies. From 1 July 2021, the criterion of RUB 1 billion was established for the amount of income and the amount of assets; RUB 100 million – for federal taxes.

Preparation for joining tax monitoring involves the performance of work in the following areas:

Regulation and, in the ideal case, automation of the tax reporting process, including the tax registers used.
Building (improving) the internal control system (ICS) for tax monitoring purposes taking into account the requirements of Federal Tax Service Order No. ED-7-23/518@ of 25.05.2021.
Arranging data exchange between the company and the tax authority by providing access to the company’s accounting system or using the Data Mart.
Integration of information systems of entities participating in tax monitoring with Tax-3 AIS.

The company’s participation in the tax monitoring regime implies the need for continuous development of the tax function and the system of internal tax controls. As a result, tax monitoring helps improve the tax function and increase the competencies of its employees.

Preparation process

We recommend that preparations begin with a diagnostic assessment of the company’s readiness to join tax monitoring:

At this stage, the level of automation of tax processes and the level of ICS development are analyzed and the data exchange method is chosen.
As a result, the company receives a detailed work plan agreed with the Federal Tax Service of Russia to prepare for joining tax monitoring (a detailed roadmap).

The joining process consists of 4 stages:

1. Agreement of the roadmap for joining tax monitoring with the tax office.

2. Building (improving) the internal tax control system. In practice, it is recommended that this work be started as early as possible.

3. Preparation of a set of documents to join tax monitoring and its official submission by 1 September of the year preceding the year of tax monitoring. In practice, documents are provided to the tax office starting from March as and when ready (according to the deadlines in the agreed roadmap).

4. Implementation of the selected method of information impact as part of tax monitoring and integration with Tax-3 AIS.

*The deadlines depend on the level of readiness of the company, the selected method of data exchange, the accounting systems used, and may be changed based on the results of discussing the roadmap with the Federal Tax Service of Russia.

Our services

Kept performs “full cycle” work, including diagnostic assessment of the state of the company’s readiness for the transition to the tax monitoring regime, preparation of documentation, support after joining the tax monitoring regime, automation of tax accounting taking into account the tax monitoring requirements, development of a data mart.

Analysis of the company’s readiness to participate in tax monitoring.
Creation (enhancement) of the risk management system and the internal control system.
Preparation of a package of documents in a machine-readable format for joining the tax monitoring regime.
Methodological support for a company in the process of automating data exchange with the Federal Tax Service of Russia.
Automation of data exchange with the Federal Tax Service of Russia using the Data Mart or by providing access to the taxpayer’s information systems and integration with Tax-3 AIS.

Should you have any questions, please do not hesitate to contact us and we will be glad to answer all your questions as soon as possible.

Why Kept?

1. Kept is the first company among its competitors to develop its proprietary Data Mart solution to interact with the tax authorities without involving an IT integrator. The Kept Data Mart was highly appreciated by the tax authorities.

2. Successful implementation of 1C software: Tax monitoring.

3. Successful experience in preparing the transition to tax monitoring for companies from various sectors.

4. A team of specialists in tax, ICS and IT with unique practical experience in tax monitoring.

5. Successful experience in organizing data exchange with the Federal Tax Service of Russia and Interdistrict Inspectorates for major taxpayers, in particular the implementation of the Data Mart software and its integration with SAP, Oracle, 1C and other systems, as well as integration with Tax-3 AIS.

6. Active participation in the development of tax monitoring in Russia. In particular, Kept participates in the Expert Council of the Federal Tax Service of Russia on the development of tax monitoring, as well as in the pilot project on the implementation of the profits tax audit file.

Collaboration with IT integrators

We offer IT integrators to expand their capabilities and offer their clients our innovative IT tax solutions, including for tax monitoring. For more details, see here.