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Tax penalties in Russia

What is the penalty if tax returns are filed too late?

If you don't file your tax return by the due date, you may have to pay a failure-to-file penalty which is usually 5% per month of late tax return filing, but this penalty cannot exceed 30% and may not be less than 1,000 Rubles.

The Federal Tax Service will calculate the penalty amount and send you a bill.

What is the penalty when tax returns are inaccurate?

You may have to pay an accuracy-related penalty if you show negligence or disregard of the rules or regulations or fail to keep basic records and supporting documentation.

The penalty for such offense is 10,000 Rubles, but if the committed offense is repeated for more than one taxable year, then the penalty increases to 30,000 Rubles.

If your negligence resulted in tax underpayment, then the penalty will be equal to 20% of the underpayment.

What if we underpay tax?

If you fail to pay enough income tax, a penalty of 20% of the unpaid amount could be imposed.

Interest for each day of delay following the due date of unpaid tax will also need to be paid.

The current applicable interest rate is around 10% per annum.

What if we fail to supply records to Russian tax authorities?

If you do not submit the accounting records or supporting documentation requested by the Tax Service, a penalty of 200 Rubles for each failure will be imposed.

What if reports on controlled transactions are not filed?

A penalty of 5,000 Rubles is imposed if reports are not filed by the due date, if they do not include all required information, or contain incorrect information.

How can Accountor help?

Accountor Russia’s tax experts can help you to handle any tax issues in Russia. We are always pleased to give tax advice to foreign companies in Russia so that they can avoid being subject to tax penalties. We draw from our 25 years of experience to resolve your specific cases. We can also provide invaluable assistance in case of tax disputes with the Russian Tax Service as evidenced by the numerous court cases that we have won together with our clients.