RBC: head offices of foreign companies prohibit “subsidiaries” from paying taxes in Russia

Foreign companies face difficulties in liquidating Russian subsidiaries, writes RBC with reference to the experts of the consulting company Business Solutions and Technologies. Business consultants say it’s not uncommon for the liquidation process to drag on for months.

One of the main problems for foreign companies leaving Russia is the prohibition of parent companies from paying taxes to the Russian budget. “We received numerous requests from foreign clients about what would happen if they stopped paying taxes and filing declarations,” said Anton Zykov, partner of the company, head of the tax dispute resolution group. At the same time, as RBC notes, the US authorities, for example, allowed companies controlled by American citizens to pay taxes in the Russian Federation, despite the sanctions.

Experts advise to continue filing reports and declarations. In this case, the tax service will be able to independently write off funds from the company’s accounts. If the required documents are not submitted, the company will be fined for non-payment of taxes, and its management risks falling under administrative or criminal liability.

Anastasia Larina