Fines for failure to submit transfer pricing reports will increase significantly for companies
Federal Law No. 539-FZ of#nbsp;November 27, 2023, introduced large-scale changes to#nbsp;the Tax Code; specifically, the changes affected transfer pricing fines.
If#nbsp;a#nbsp;company fails to#nbsp;submit notifications of#nbsp;controlled transactions completed in#nbsp;a#nbsp;calendar year to#nbsp;the Tax Authorities on#nbsp;time or#nbsp;the notification contains false information, the fine will be#nbsp;100,000 rubles (instead of#nbsp;5,000 rubles).
If#nbsp;you fail to#nbsp;submit a#nbsp;notice of#nbsp;participation in#nbsp;an#nbsp;international group of#nbsp;companies within the prescribed period or#nbsp;provide false information, instead of#nbsp;50,000 rubles, the company will pay a#nbsp;fine at#nbsp;the new rate of#nbsp;500,000 rubles for each violation.
In#nbsp;case of#nbsp;failure to#nbsp;submit a#nbsp;country report on#nbsp;time or#nbsp;submission of#nbsp;a#nbsp;country report containing false information, the fine for the company will be#nbsp;1,000,000 rubles for each violation (instead of#nbsp;100,000 rubles)
Also, for failure to#nbsp;submit national documentation and global documentation within the prescribed period, the fine for the company has been increased to#nbsp;1,000,000 rubles (today, this fine is#nbsp;100,000 rubles)
A#nbsp;new fine will be#nbsp;introduced for the taxpayer’s failure to#nbsp;submit documentation regarding a#nbsp;specific transaction (group of#nbsp;similar transactions) within the prescribed period. The fine for the company will be#nbsp;500,000 rubles.
A#nbsp;new fine of#nbsp;1,000,000 rubles for failure to#nbsp;submit information or#nbsp;the submission of#nbsp;false information from the consolidated financial statements of#nbsp;the multinational enterprises will take effect from January 01, 2024.
The fine has been increased for non-payment or#nbsp;incomplete payment by#nbsp;a#nbsp;taxpayer of#nbsp;tax amounts as#nbsp;a#nbsp;result of#nbsp;the application for tax purposes in#nbsp;controlled transactions of#nbsp;commercial and (or) financial conditions that are not comparable with the commercial and (or) financial conditions of#nbsp;transactions between persons who are not interdependent. The fine will be#nbsp;100% of#nbsp;the unpaid tax on#nbsp;such income but not less than 500,000 rubles. Today, it#nbsp;is#nbsp;40% and at#nbsp;least 30,000 rubles.