Anti-offshore legislation approved by Duma

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Anti-offshore legislation: Russian shareholders in offshore businesses working in the country will have to pay domestic taxes on the companies’ earnings from the beginning of next year after the Duma voted in favour of the Anti-offshore bill on its second and third readings yesterday.

 Under the terms of the new legislation, Russian shareholders will have to pay taxes on undistributed earnings of foreign-controlled companies that record a profit of more than RUB 50m, a figure that will gradually decrease to RUB 10m by 2017.Russians will also be obliged to disclose any shareholding of more than 10% in an offshore company and, if their combined shareholding along with those of their spouses and dependent children amounts to more than 50%, will be deemed to be the “controlling entity.” Gazeta