New rules for the accreditation of branches and representative offices of foreign organizations and their foreign workers.

On December 16, 2014, the Resolution^[1] of the Government of the Russian Federation was adopted that went into force on January 1, 2015, confirming the new state agency authorized to accredit branches and representative offices of foreign legal entities in Russia.

It is the Federal Tax Service of Russia (hereinafter – FTS).

Changes that affect accredited branches and representative offices 

Awara reminds you that accredited branches and representative offices whose accreditation expires after April 1, 2015 must, by April 1, 2015, submit information about themselves to the tax authorities on the latest approved forms for entry into the state registry of accredited branches, representative offices of foreign legal entities and publication on the Internet on the official site of the FTS of Russia. After April 1, 2015, the accreditation of branches and representative offices that have not submitted information to the authorized agency by the deadline will terminate.

Agency conducting accreditation of branches and representative offices in Moscow 

By the Order^[2] of the FTS of Russia dated December 22, 2014, authority for accreditation of branches and representative offices of foreign legal entities (with the exception of foreign credit institutions) is now assigned to the Interdistrict Inspectorate of the Federal Tax Service of Russia № 47 for Moscow.

Procedure for accreditation of branches and representative offices 

The Federal Tax Service of Russia has confirmed a new procedure for accreditation, entering changes in information contained in the registry, and termination of the validity of accreditation of branches and representative offices of foreign legal entities, and has developed new lists and formats of documents^[3].

After January 1, 2015, prior to submitting an application for accreditation of a branch or representative office of a foreign legal entity, the applicant will have to verify the information as to the number of foreign employees of such branches (representative offices) at the Chamber of Commerce and Industry (hereinafter – CCI).

New requirements

The current legislation^[4] establishes a list of information that must be included in the regulations on representative offices and branches of foreign organizations. If the information about branches, representative offices or foreign companies that is entered in the registry changes, the branch or representative office must inform the tax authorities no later than 15 calendar days after the change.

Accreditation of foreign employees

Changes at the legislative level reinforce the necessity for all foreign employees working at branches or representative offices of foreign companies to undergo personal accreditation at the CCI. Previously the obligation was set out by regulations and such accreditation could be carried out at the CCI^[5] or the State Registration Chamber of the Ministry of Justice of Russia^[6]. As of January 1, 2015, personal accreditation is carried out only by the CCI. So far the new procedure for personal accreditation has not yet been confirmed by the CCI. Upon completion of the personal accreditation process, a certificate of personal accreditation will be issued instead of the previously issued personal accreditation cards (service card, sluzhebnaya kartochka).

Recommendations

We recommend foreign organizations operating in Russia through branches and representative offices take note of the changes in the law, as well as:

1. Check for the need to amend regulations on branches and representative offices for their compliance with the new requirements;
2. Provide information on branches and representative offices to the tax authorities if the term of their accreditation expires later than April 1, 2015.

Specialists at Awara will be happy to assist you in resolving the above-mentioned issues, as well as answer any questions you may have.

Our Contacts

[1] Resolution of the Government of the Russian Federation dated 16.12.2014 N 1372 “On Amendments to the Regulations on the Federal Tax Service and the Repeal of Certain Acts of the Government of the Russian Federation”

[2] Order of the Federal Tax Service of Russia dated 22.12.2014 N MMV-7-14 / 668  “On Assigning Authority for Accreditation of Branches and Representative Offices of Foreign Legal Entities (Except for Representative Offices of Foreign Credit Institutions) in the Interdistrict Inspectorate of the Federal Tax Service of Russia N 47 in Moscow”

[3] Order of the Federal Tax Service of Russia dated December 26, 2014 No. MMV-7-14 / 680, Order of the Federal Tax Service of Russia dated December 26, 2014 No. MMV-7-14 / 681, Order of the Federal Tax Service of Russia dated December 26, 2014 No. MMV-7-14 / 684

[4] Art. 22 of the Federal Law dated 09.07.1999 N 160-FZ (ver. dated 05.05.2014) “On Foreign Investments in the Russian Federation”

[5] http://www.tpprf.ru/ru/services/32602/

[6] Order of the Ministry of Justice of Russia dated 25.11.1999 N 341