New amendments to the Russian Tax Code affected foreign affiliated parties by Federal Law dated November 27, 2023, N 539-FZ

If the price applied in a transaction between related parties differs from the market price and one of the parties is not a tax resident of the Russian Federation, such difference becomes the basis for adjusting the tax base for taxes. The income from a non-tax resident of Russia, in the amount of the corresponding adjustment, is equal to dividends received by this non-tax resident from sources in the Russian Federation and is taxed by Russian legislation.

The date of receipt of such income is recognized as the last day of the calendar year in which the transaction between related parties was completed.

If a foreign company returns the price difference to Russian company to the bank account no later than the deadline for paying the corresponding tax for the tax period in which the transaction between related parties was made, then this difference will not be equated to dividends.