Starting with the year 2012 Russian taxpayers may create a tax consolidation group, as provided for in chapter 3.1 of the Russian Tax Code as amended by the Federal law #321-FZ as of 11/16/2011.
A tax consolidation group shall be a group of profit tax taxpayers, provided that:
– it does not create a legal entity,
– it is formed on a voluntary basis,
– it is based on a contract for creation of such a group registered by the Russian tax inspection,
– it is created and acts in compliance with the Tax Code,
– its purpose is calculation and payment of profit tax based on cumulative financial results of the member companies.
This option is available for Russian companies, who own over 90% of one another directly or indirectly, if in 2011 they paid an aggregate amount of taxes over 10 bln RUR, gained income of more than 100 bln RUR, and their overall asset book value was over 300 bln RUR.
profit tax, tax consolidation, Russia, large companies