Russia introduces fixed tax on foreign profits

Russia has set a fixed amount of  RUB5 million ($72,777) per year as tax on revenues from the activities of controlled foreign companies (CFC). The new rules allow CFC owners to elect to pay tax on a deemed fixed income of RUB38.46 million, instead of being taxed on the CFCs' actual declared profits. The effect is a RUB5 million flat-rate tax charge for the year 2020, regardless of the number of CFCs owned or their real financial performance. "Now, Russian tax residents - owners of fore...