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In a paper for Bloomberg BNA’s Tax Management Transfer Pricing Report, NERA Associate Director Dr. Vladimir Starkov analyzes draft Russian legislation that addresses implementation in Russia of the guidance from the Organization for Economic Co-operation and Development (OECD) on transfer pricing documentation and country-by-country reporting. Russia is the latest in a worldwide rollout of countries’ individual legislation to comply with this guidance, laid out in OECD Action 13. Parliament will vote on the draft in September–October 2017.

Dr. Starkov’s report, “Russia’s Draft Country-by-Country Reporting and Financial Disclosure Legislation,” examines the draft and its implications, laying out idiosyncrasies in the current draft, its various filing and reporting requirements (including that all files must be submitted in the Russian language), and its financial information exchange mandates. He also addresses the deadlines and penalties that would be imposed for non-compliance, should the legislation pass. Ultimately, Dr. Starkov concludes that the draft’s relative alignment with OECD guidance and forgiving early penalties would give taxpayers ample time to comply with the new regulation.