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.
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.
Russia’s transfer pricing regulations are rooted in the OECD Guidelines, with a legal precedence of Russian law in case of conflicts.
Large taxpayers meeting specific criteria are eligible for advance pricing agreements (APAs) that are valid for three years and extendable by two years.
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.
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 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.