Transfer Pricing
Country Summary
Russia
This document summarizes the transfer pricing requirements and regulations in Russia. Although Russia is not an OECD member, it has adopted transfer pricing rules based on OECD Transfer Pricing Guidelines. These regulations have been in place since 2012 and were updated in 2017 to align with BEPS Action Plan 13. They cover documentation requirements, related party definitions, and other critical aspects.
Overview:
Transfer Pricing Rules in Russia
Russia’s transfer pricing rules are influenced by the OECD Transfer Pricing Guidelines, despite not being an OECD member. These regulations were introduced in 2012 and have evolved with updates in 2017 to adhere to BEPS Action Plan 13. The rules encompass various key areas.
Definition of Related Party
In the context of transfer pricing, Russian tax authorities oversee cross-border transactions with related parties, regardless of transaction amounts. They also scrutinize cross-border transactions with non-related parties if income or expenses exceed RUR 60 million. The definition of related parties includes various scenarios based on share ownership and control.
Transfer Pricing Documentation
Russia’s transfer pricing regulations are rooted in the OECD Guidelines, with a legal precedence of Russian law in case of conflicts.
Advance Pricing Agreement (APA)
Large taxpayers meeting specific criteria are eligible for advance pricing agreements (APAs) that are valid for three years and extendable by two years.
Transfer Pricing Documentation
The transfer pricing documentation requirements in Russia adhere to BEPS Action 13’s three-tiered approach. This includes a master file, a local file, and a Country-by-Country Report. Smaller and less complex enterprises face less stringent requirements.
Production Process for TP Relevant Returns, Documents, Forms and Financials
Russian transfer pricing regulations demand specific filing requirements for Country-by-Country Reports, master files, and local files. The language for these documents must be in Russian.
Penalties and Interest Charges
Penalties can be levied for non-compliance, including for non-payment resulting from non-comparable terms in controlled transactions and for the failure to submit notifications or providing inaccurate information.