Tax registration has been simplified for foreign companies and separate divisions
The procedure for tax registration for organizations operating through separate divisions has changed. The new rules give companies more flexibility in choosing their tax authority and allow them to subsequently abandon their previously chosen tax authority.
The changes are primarily relevant for organizations that operate multiple separate divisions within a single municipality or within territories under the jurisdiction of different tax authorities. A separate procedure is provided for divisions located in federal cities.
You can select one tax office for several divisions
If an organization has several separate divisions located in the relevant territory, it can choose the tax authority with which to register at the location of one of these divisions.
This mechanism eliminates the need to distribute a company’s interactions with tax authorities among several inspectorates, and instead centralizes them within a single, selected tax authority.
This procedure is especially relevant for companies with complex structures. If there are multiple divisions, registration and subsequent interaction with tax authorities can be organized through a single tax office, reducing the number of parallel administrative procedures.
You can now cancel the selected inspection
The innovation lies not only in the ability to choose a tax authority, but also in the ability to cancel a previously made choice .
If an organization submits the appropriate notification, the separate subdivision is subsequently registered at its actual location. Thus, a company can change its previously chosen tax accounting procedure if centralized interaction with a specific tax office is no longer convenient or necessary.
The procedure for submitting a notice of refusal from the selected tax authority corresponds to the procedure for submitting a notice of the initial choice of tax authority.
The document can be submitted:
- in person or through a representative;
- by registered mail;
- in electronic form via telecommunication channels;
- through the taxpayer’s personal account.
This allows the organization to independently determine the most convenient model for interacting with tax authorities and change it if necessary.
The changes affect various tax authorities.
The new procedure applies in situations where separate subdivisions are located within a single municipality, as well as in the corresponding territories of federal cities. It also takes into account cases where subdivisions are located in territories under the jurisdiction of different tax authorities.
For organizations with multiple divisions, this allows for more flexible tax accounting. Instead of having to establish separate relationships with each tax authority, the company can choose a single tax authority or later revert to registering the division directly at its location.
Registration for opening an account has been simplified for foreign organizations.
A separate change concerns foreign organizations that need to register for tax purposes in connection with opening a bank account.
Foreign organizations no longer need to submit an application and other documents to the tax office for registration when opening an account. The bank where the account is opened forwards the relevant information to the tax authority .
This changes the very organization of the procedure: interaction between a foreign company and the tax authority in this case is carried out through a banking organization.
After a foreign organization is registered for tax purposes, information about this is sent to the bank that submitted the application. The bank, in turn, forwards the information received to the foreign organization itself.
An extract from the register is available upon request.
If necessary, a foreign organization may independently request a document confirming its tax registration. The tax authority has the right to provide a corresponding extract containing registration information.
Thus, a foreign company does not need to independently initiate the entire registration process when opening a bank account, but the opportunity to obtain supporting information remains.
What does this change for business?
The changes are aimed at reducing the number of administrative steps and simplifying interactions between organizations and tax authorities. For companies with multiple separate divisions, the most significant change is greater flexibility in choosing a tax authority.
In practice, an organization can:
- centralize the registration of several units through a selected inspection agency;
- if necessary, refuse such a choice;
- transfer the unit to registration at its actual location;
- submit relevant notifications both in paper and electronic form.
For foreign organizations, the main change concerns bank accounts: the bank itself now submits the necessary information to the tax authority. This reduces the amount of paperwork and steps that the foreign company must complete independently.
Overall, the new procedure makes the tax registration process more flexible for Russian organizations with extensive structures and less bureaucratic for foreign companies. However, companies with several separate divisions should carefully consider which method of interacting with tax authorities is more convenient: centralized taxation through a selected tax office or registration for each division at its location.
