Encyclopedia
Effective tax rate on income (profit) of a foreign organization
The effective tax rate on the income (profit) of a foreign organization is determined using the following formula: Tax eff = _ x 100%, where for the purposes of this subpoint: Tax eff - effective tax rate on the income (profit) of a foreign organization; Tax - the amount of tax on income (profit), calculated by the foreign organization and its separate units in accordance with their own personal law, and the tax on income withheld from the income (profit) of such an organization at the source of payment of such income, unless otherwise provided in subpoint 3 of this paragraph...; Profit - the amount of income (profit) of a foreign organization determined in accordance with the first paragraph of paragraph 1 of article 25-15 of this Code. When calculating the N indicator, the taxpayer is entitled to adjust this indicator by the amount of taxes that relate to the income (profit), taken into account when calculating the P indicator, and are subject to calculation in accordance with the personal law of the foreign organization and (or) withholding in other periods different from the period for which the P indicator was calculated. In the case where, as a result of the tax period under the tax of the foreign organization (foreign structure without the formation of a legal entity), there are no incomes or if the value of the P indicator is a negative value or equal to zero, the calculation of the effective rate is not carried out, and such foreign organization (foreign structure without the formation of a legal entity) is deemed a controlled foreign company (ceased to be in force from 2019-05-01)1.
The effective tax rate on the income (profit) of a foreign organization is determined according to the following formula: where, for the purposes of this subpoint: Сэфф - effective tax rate on the income (profit) of a foreign organization; Н - the amount of tax on income (profit), calculated by the foreign organization and its separate units in accordance with their own personal law, and the tax on income withheld from the income (profit) of such an organization at the source of payment of such income, unless otherwise provided in subpoint 3 of this point, excluding the tax on income withheld at the source of payment in relation to the income specified in subpoint 1 of paragraph 4 of article 309.1 of this Code, the source of payment of which are Russian organizations, if the controlling person of such a foreign organization has actual rights to such income taking into account the provisions of article 312 of this Code; П - the amount of income (profit) of a foreign organization determined in accordance with the first paragraph of paragraph 1 of article 25.15 of this Code, reduced by the amount of income specified in subparagraph 1 of paragraph 4 of article 309.1 of this Code, the source of payment of which are Russian organizations, if the controlling party of such foreign organization has actual right to such income taking into account provisions of article 312 of this Code2.
1998. No. 31. Art. 3824.
Tax Code of the Russian Federation. Part one dated 31.07.1998, amended on 2019-01-01, art. 25-13#2, subpara. 1, ceased to be in force from 2019-05-01 // RSZ RF. ↩
Tax Code of the Russian Federation. Part one dated 31.07.1998, amended on 2020-11-09, art. 25.13-1, subpara. 1 // RSZ RF. 1998. No. 31. Art. 3824. ↩