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Procedure specified for granting international companies status of international holding

March 26, 2022

Vladimir Putin signed the Federal Law On Amendments to Parts 1 and 2 of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation.

The Federal Law specifies the procedure for granting international companies the status of an international holding company.

To increase the attractiveness of special administrative regions and encourage the transfer of foreign companies to the Russian jurisdiction, the Federal Law contains a stabilisation clause for international holding companies making them exempt from tax and duty legislation provision,s which worsen conditions for paying corporate income tax, corporate property tax and transport tax for such companies.

The Federal Law sets the peculiarities of calculating taxes by international holding companies. Thus, when determining the income tax base, exemption is made of such companies’ revenues from projects on geological studies, surveying and extraction of mineral resources if these companies are registered with a foreign tax authority for the purpose of implementing such projects. 

March 26, 2022