FTS Clarifies Grounds and Procedure for Tax Deferral
Amid economic uncertainty, managing tax liabilities is critical for businesses. The Federal Tax Service (FTS) has issued detailed guidance on obtaining deferrals or installment plans for taxes, fees, insurance premiums, penalties, and fines. Key provisions are based on Chapter 9 of the Tax Code (TC) and current administrative practices.
Key Clarifications from the FTS:
1. Deferral ≠ Loan • Tax authorities (e.g., Moscow Office) emphasized that deferrals are state support measures, not commercial loans. • The process is administrative, not contractual, requiring strict compliance with formalized steps.
2. Three-Stage Approval Procedure: The FTS outlined mandatory stages for applications:
1. Grounds Assessment: Taxpayers must prove valid reasons for inability to pay immediately. → Primary ground: A genuine bankruptcy threat (assessed using criteria from Ministry of Economic Development Order No. 169, dated 14.03.2023).
2. Restriction Checks: Authorities verify if applicants fall under TC Article 64 exclusions (e.g., entities in liquidation/reorganization or with active enforcement proceedings).
3. Collateral Requirement: In most cases, taxpayers must provide security:
§ Bank guarantee
§ Suretorship (from solvent entities)
§ Property pledge (high-liquidity assets).
3. Eligible Debts: • Deferrals/installment plans may cover not only core tax arrears but also penalties and fines. • This expands options for financial recovery.
4. Critical Limitation: • Total deferred amount (arrears + penalties + fines) cannot exceed the original tax arrears. • Prevents potential misuse.
Why This Matters for Businesses:
The FTS’s guidance brings transparency to an often-opaque process. Understanding the three stages enables companies to: • Realistically assess eligibility before applying. • Prepare documentation: Bankruptcy threat evidence (financial analysis/recovery plans) and collateral options. • Manage expectations: Deferrals restructure payments but require guarantees. • Include penalties/fines in restructuring, reducing short-term burdens.
The FTS’s clarifications enhance predictability for businesses facing temporary distress. Prioritizing bankruptcy threats and collateral reflects the state’s balance between supporting compliant taxpayers and safeguarding budget interests. Companies should thoroughly study the Ministry’s criteria and prepare robust evidence of financial hardship and repayment guarantees.
