In connection with Russia's accession to the International Automatic Information Exchange since 2018, new rules for submission of documents on international groups of companies have been introduced to the Tax Code of the Russian Federation ( the federal law from 27.11.2017 № 340-ФЗ). FTS has issued projects of orders on country report formats and notice of participation in the International Group of Companies. A new order of their presentation and filling in electronic form has been prepared.
Section V.1 NK is now dedicated not only to interdependent persons, but also to international groups of companies. Chapter 14.4-1 is introduced on the presentation of documentation on international groups of companies, conditions are prescribed under which the aggregate of firms or foreign structures without the formation of a legal entity is recognized as an international group. Participants of such groups should take a notice of participation in the International Group of Companies and Country Information on the Group, the participant of which is the taxpayer.
The purpose of the seminar is with the participation of specialists of regulatory and regulatory authorities, as well as expert practitioners to consider adopted innovations, discuss the practice of tax control on controlled transactions, consider the latter judicial practice, analyze errors in the preparation of documentation and notifications.
The seminar is intended for specialists of the divisions of TCS, planning and economic departments, tax lawyers, financial directors and chief accountants of enterprises.
Program:
- Practical aspects in the work on the TCO. New in the rules of subtle capitalization. Practical aspects of the work of the company for compliance with the rules transfer pricing. Detection and analysis of controlled transactions. Defining the factors of comparability, functions and risks of the parties. Assessment of price / profitability in current planned market levels. Preparation of documentation. Matrix of transfer pricing methods. Choosing a method. Combination of methods. Analysis of current judicial practice on the TCTC and the impact of court decisions on future actions of taxpayers. Considering by the courts of the transaction. Answers on questions.
- Major changes in transfer pricing legislation in 2017-18. Overview of the clarification of the Ministry of Finance of Russia on the application of transfersal pricing legislation. Answers on questions.
- Practice of conducting inspections of compliance with the legislation on TCS. Examples of internal investigations of transfer pricing. Detection of interdependence of companies. Checking the compliance of the terms of contractual contracts. Determination of tax consequences of concluded contracts for companies.
- Accounting and tax consequences of changing the transaction price. Rules for changing the price of the contract (transaction) according to the Civil Code of the Russian Federation. Reflection of changes in the transaction price in accounting and tax accounting. Gratuitous transactions: tax problems at the parties and ways of their permission. What transactions will fall under the control of tax authorities. Can the tax authorities carry out price control in uncontrolled transactions. Tax consequences various forms of financing in groups of companies: domestic services and various forms cost coverage; intragroup loans; dividends; free financing; Attachment B. statutory capital etc. Tax traps in groups of companies (unreasonable tax benefit, free use, losses and transfer losses for future periods, economically unfounded costs, etc.) and how to avoid them. Scheme of business crushing in the interpretation of tax authorities and ships (USN, UNVD, PSN). How to reduce tax risks. Features of taxation of separate divisions. Complex issues of applying price discounts, bonuses and premiums: legal registration, accounting.
- The method of comparable profitability. Approaches to the search and selection of comparable companies. Rules for applying a method of comparable profitability. Restrictions on its use. Analysis of indicators of operating profitability, methods of their calculation and the situation when it is advisable to apply each of them. Problem issues of selecting comparable companies. The main approaches and parameters of the formation of the sample of comparable companies and further work on building the evidence base of comparability of selected companies.
- Practical questions Judicial practice on the application of the legislation on the TCO in Russia. Overview of the current Russian judicial practice on transfer pricing prepared Supreme Court Russian Federation. Review of the latest court decisions on the use of TCTC rules. Who can check prices in transactions? The concept of unreasonable tax benefit. When the court can recognize individuals with interdependent. Answers on questions.
- Tax administration of transfer pricing in Russia. Influence of BEPS on the practice of tax administration TCS. Administration of checks on Tzo - Who and what does? The practice of applying the provisions of section V.1 of the Tax Code of the Russian Federation. Practice of tax control of Russia prices. Aspects of transfer pricing in financial transactions, intragroup services. New format of documentation for transfer pricing. Independent assessment of tax risks of transfer pricing. Answers on questions.
- Tax disputes 2016-2017 and strategies of groups of companies. Risk management regarding the interaction of companies belonging to the Group of Companies. The main types of tax disputes by TCS. Errors companies in relation to and tax authority. Strategy of work of groups of companies to avoid risks of tax disputes. Strategy of work with prices to avoid the risks of disputed situations.
- Answers on questions.
The first country where the laws regulating transfer pricing mechanisms were adopted in the 1960s. In the 1990s, this question was actively considered on international Level, then there were fundamental regulationsgoverning the value of goods and services to transnational corporations.
In Russia, since 2012, new legislation has appeared on transfer prices. Relationships of related companies are regulated by Chapter 6.1 of the Tax Code, which has become a replacement-supplement to those applicable to Articles 20 and 40. Actual norms have introduced a list of cases in which the tax authorities have the right to check the cost of products established by firms, and registered the right of fiscal services to detach taxes and require their payment to the budget .
According to the provisions of the current legislation, the purpose of transfer pricing is:
- Do not enable groups of related persons working in regions or countries with different modes Taxation, artificially undertake profit and income indicators.
- Do not create administrative barriers to the work of conscientious taxpayers who work in Russia, including international corporations.
Russian legislative regulation is based on the experience that has accumulated international transfer pricing. In particular, a common "pull-out hand rule" is used. Its essence is that the cost established by the associated business entities is compared with the price that goods and services would have if commercial structures were completely independent.
What operations refer to the discharge controlled?
In order to oversee transfer prices, the current legislation introduces the category "Controlled Transactions". These are the operations performed by a group of related persons relative to which the fiscal bodies have the right to check the established prices for compliance with the market.
The rules for transfer pricing in the Russian Federation are introduced the following types of operations subject to doppank:
- Operations performed between the two parties recognized under the legislation with interdependent.
- Transactions in which two interrelated parties and the third - mediator are taking part, if:
- does not assume any risks and does not create value added;
- performs a function that is reduced exclusively for the resale of goods and services.
- Operations committed between Russian companies or representative offices of foreign organizations in the territory of the Russian Federation, and offshore countries.
- Transactions concluded on the foreign market with stock goods (energy, fertilizers, metals, gems etc.).
Important! Operations of 3-4 points fall under state control Only if the annual revenue of the company on them exceeds 60 million rubles.
Transfer pricing 2017 assumes that operations between interrelated persons become controlled if:
- The transaction counterpartier is registered on the territory of a special economic zone with preferential taxation, while another participant in relations is calculated by budgetary obligations at standard rates.
- One of the participants is fully released from the payment of income tax, i.e. For it, the rate is valid 0%.
- Operation is performed with a person mining natural resources and listed in the treasury NPPI.
- One member of the market operation is a company or IP, using the preferential taxation mode.
In order for the transaction to be controlled, revenues should exceed the cost threshold determined by law. For different types of operations, it fluctuates at the level of 60-100 million rubles.
What transactions are not controlled by the tax authorities?
In art. 104.14 The Tax Code provides a list of operations not subject to price control. It includes:
- Transactions between participants in the consolidated group of taxpayers organized in full compliance with Russian laws.
- Operations in which persons meet all the following criteria are involved:
- their legal addresses belong to one country region;
- they have no separable divisions in other subjects of the Russian Federation and countries;
- they pay taxes in the budget of one region;
- none of the parties have losses for past periods to which you can reduce the tax base in the current;
- none of the participants in the transaction did not switch to the degree of taxation, did not become a resident of the special economic zone.
The list of uncontrolled operations given to the Tax Code of the Russian Federation is recognized as closed and is not subject to expansion interpretation.
Important! Active tax law It is based on the assumption that prices for transactions between unrelated persons a priori are market.
Who are interrelated faces?
Transfer pricing regulation introduces the concept of "interdependent (or related) faces." These are citizens or organizations that, due to the availability of certain relations and connections, can influence financial results Activity of each other.
Related persons become an object of increased interest on the part of tax authorities, because they have more levers than other participants in market relations to reduce the fiscal load and withdraw profits from the taxation. Because of their actions, the budget misses the proposed income.
Relationships between related persons can affect:
- transaction prices;
- indicators of income and profits of organizations;
- other aspects of their economic relations.
There are three main criteria, on the basis of which the law refers persons to the category of interrelated:
- Participation of a physical or legal person in the capital of another, which has direct or indirect character. The share of influence should be at least 25%.
- The presence of blood bonds between individuals.
- The presence of official subordination between the two citizens caused by the features of the service hierarchy.
Listed factors allow you to establish interconnected by law. However, they do not exhaust the capabilities of tax authorities. By contacting the court, they may require recognition of persons associated with any other reasons.
It is also possible to voluntarily recognize interconnected when the taxpayer independently addresses the fiscal bodies and provides information on the possibilities of influence on the financial results of other structures.
Additional duties of related persons
Companies to which apply different types Transfer prices should:
- Direct the annual notifications of the controlled transactions that took place in the FTS that took place for the period. The deadline for submission of the report - until 20.05 next year.
- At the request of the tax authorities to submit data and documents regarding a specific operation or aggregate of contracts.
The legislation leaves the fiscal authorities the right to question the market nature of prices established for any transaction between interrelated persons. If the tax authorities manage to prove that doubts are not read, the company will oblige to recalculate income taxes and value added and pay the difference to the budget.
Transfer pricing methods
Pricing techniques are a set of approaches and rules, with which fiscal structures can compare the cost within a particular transaction with its market value. There are five ways that the right to apply FTS:
- Comparative method
Russian legislation takes his priority. This means that the use of other methods is possible only if this does not work or does not give reliable results.
The essence of the technique is to compare the price of the operation with the market, i.e. This, which is established during transactions with identical (or at least homogeneous) goods under comparable conditions. Information about the cost is drawn from official, reliable sources. For analyzing the tax authorities, prices are ranked ascending, remove the minimum and maximum value, and from the remaining interval.
- Method of Pricing Further Implementation
This method is based on the comparison of the gross profitability received by the participant of the controlled transaction, with its minimum level characteristic of the market as a whole. It is applicable for companies that perform product resale functions that do not significantly affect the characteristics of goods and have intangible assets to increase their value added.
The method is difficult to apply in Russian reality due to the difference in accounting policies of companies and frequent impossibility of obtaining full and reliable information.
- Cost method
Based on the comparison of the gross profitability of the cost of the participant of the controlled transaction and the same indicator for the market as a whole. Transfer prices based on variable costs apply to evaluate transactions of companies providing financial services (for example, management Company, control cash streams etc.), when buying sales of raw materials, real estate, etc.
- Method comparable profitability
The use of this method is possible in cases where the control over transfer pricing on the previous four methods is impossible in the current situation. The principle is based on comparisons of various indicators of operating profitability (assets, sales, expenses, etc.) with values \u200b\u200brelevant to other market participants leading similar activities.
- Profit distribution method
The most difficult way to use the tax authorities is least if the previous ones do not work. It is applicable for closely related structures in the objects of intellectual property.
Fiscal bodies determine the aggregate transaction profits and calculate parts that have passed the participants in proportion to their expenditures, nested risks, etc. If the organization received less than it was calculated by the controllers, their profits are adjusted for taxation.
Transfer pricing of the NC RF is a relatively new direction in the activities of fiscal structures. His goal is not to enable linked persons to artificially underestimate profitability and reduce the tax burden. Penalties and other measures of impact are applied to violators of legislation.
If you have found a mistake, please select the text fragment and click Ctrl + Enter..
Concept transfer pricing comes from french translation Transfert - I am transferring, I move, that is, income is distributed among interdependent enterprises or divisions of one company, corporation. Objectives of redistribution - tax minimization or increasing profits of a structural unit.
Tax inspections are required to control the relationship between enterprises in which transfer prices are applied. Organizations applying them is shown the obligation to provide settlements with a documentary justification. Official sources taken by fiscal bodies are established:
- Information and price agencies;
- Reporting legal entities and individual entrepreneurscertified by tax and statistical authorities;
- Stock quotes;
- Information about similar transactions of the controlled organization;
- These independent appraisers analyzing the transfer pricing of 2017.
The Tax Code of the Russian Federation determines the methods of calculating the substantive price.
Transfer pricing rules
Price formation conditions are established by Articles 105.9 - 105.13 of the Tax Code of the Russian Federation. It is allowed to use from one to 5 options whose sequence is constructed depending on the significance for use.
Comparable market prices
The mechanism is based on the assessment of the operations of the purchase and sale of similar goods, works, services between persons whose relationships exclude mutual or unilateral impact on financial results. Mandatory condition for comparability - full information About transactions, that is, there are information about the accompanying costs, the procedure for payment, the cost of the contract.
Example
The company "A" delivered 25.05.2017 in Ivanovo cotton of the subsidiary of "B" for $ 5 per kilogram. When checking, the tax inspection found out - the price is increed by 0.7 cents. To justify doubt, the inspection led to the comparability of the cotton purchase agreement on March 18, 2017. The same variety between enterprises "K" and "M". Further, it turned out that the information is not subject to comparison, since "A" purchased goods in Moscow 05/20/2017 for 4 euros, and "K" acquired him in Uzbekistan 22.04.207 for 280.16 rubles.
Prices of subsequent implementation
Transfer pricing of the NK RF for further sale builds on the analysis financial efficiency Transactions of the buyer's company for the sale of goods acquired from the interdependent person.
The principle of comparability will explain the visual example
The organization "B", paying UTII, acquired several times of Minvatu, including in the interdependent "g" and sold persons who are not relating to interdependent.
Number, units
Cost, rub.
Revenue, rub.
Gross profit, rub.
Gross profitability,% (gr. 4/5 * 100)
The transaction under consideration
Comparable transactions
Profitability interval 52.09-60,61 (arithmetic average between 1-2 and 3-4 indicators).
The income "g" is adjusted for taxation in most sideBased on the maximum value of economic efficiency (paragraph 5 of paragraph 2, Art. 105.10):
30 000 - 30 000 x 60.61% \u003d 18 183 and 30 000 - 18 183 \u003d 11 817.
Cost method
It is applied when monitoring organizations performing work or providing services for which transfer prices are used. For comparability, the supplier information is used about the costs produced by similar agreements.
Gross profit
Profitability costs (gr. 3/2 * 100)
Controlled transaction
Comparished transactions
Calculated by the components of the costs of profitability of costs 16,13-35.29. Minimum value higher than in the test contract, that is, the market price should be 295,000 + 295,000 x 16.13% \u003d 342 583.50.
Adjustments:
- VAT - 2583.50 x 0.18 \u003d 465.03
- Profit - (2583,5 - 465,03) x 0,20 \u003d 423.69
Transfer pricing in 2017 uses quarters (dividing a number of sequences by 4) to eliminate random variables in the sample of values.
Method comparable profitability
The analyzed factor takes the operational profitability of one of the indicators:
- Assets - if large capital investments are required to conduct activities;
- Commercial, managerial expenses - a revenue directly depends on the organization's checked organization;
- Direct and indirect costs - the organization is engaged in the production of goods, performance of work, services;
- Sales - the company constantly acts as a interdependent face in relation to the seller or buyer.
Profit distribution method
The total or residual profit obtained by all counterparties of the transaction to the end user is considered. Residual profits is calculated as the difference between the reports shown in the reports and the methods specified above.
Transfer pricing methods in paragraphs 3-5 are complex for use, as they are in finding for the equalization of companies that apply identical tax policies to determine the costs - direct, indirect.
A significant number of organizations conduct their activities as part of groups of companies. Internal operations have their own characteristics that need to be considered. Thus, the centralization of profits, intragroup loans and investments, financing the management (head) company, the redistribution of costs and resources requires careful development and interaction. Tax authorities to intragroup operations are special attention.
In order to correctly and with minimal tax losses to organize interaction in the Group of Companies, it is necessary to take into account the rules for transfer pricing, the rules for thin capitalization, the test methods applied by tax authorities, judicial practice. These issues are devoted to the traditional annual conference.
Leaders:
TS Smirnova - K.Yu.N., Tax Consultant, Head of Documentary Checks and Revision Management economic security MVD.
CM. Jarbekov- expert in taxation practicing since 1990; Member of the Moscow Audit Chamber, author of more than 100 articles and 10 books, incl. "Holdings and companies with separate divisions"," Methods and schemes of tax optimization "," territorial-distributed business. Organization, financial flows, taxation "
E.A. Hooks- Expert Center for Public Procedure "Business Against Corruption" - an expert site with an authorized president of the Russian Federation to protect the rights of entrepreneurs, a member of the Chamber of Tax Consultants
and other specialists
IN A PROGRAMME:
- Changes in taxation of groups of companies in 2017-2018.
- Interdependent faces: build a definition system, analyze possible criteria Recognition. Tighboring transactions of interdependent persons: expanded accents. The specificity of the application of pricing methods for tax purposes. The feasibility of voluntary adjustments.
- Documenting controlled transactions, nearest changes in the application of documentation.
- Tasks solved by the creation of individual companies. Should the interdependence of the group of companies?
- How to optimally build a system of interdependent companies in order not to lose taxes.
- Typical errorsleading to additional tax losses - deal with examples
- Tax consequences of various financing forms in groups of companies: domestic services and various forms of cost coverage; intragroup loans; dividends; free financing; investments in authorized capital, etc.
- Tax traps in groups of companies (unreasonable tax benefit, free use, losses and transfer losses for future periods, economically unfounded costs, etc.) and how to avoid them.
- Scheme of business crushing in the interpretation of tax authorities and ships (USN, UNVD, PSN). How to reduce tax risks.
- Features of taxation of separate divisions.
- Arbitration practice: review, analysis of victories and lesions of taxpayers, recommendations.