Reconciliation with the tax authorities

Russian law allows every taxpayer or tax authority to reconcile tax calculations. There is no time limit for this procedure. Reconciliation involves reconciling taxes, fines, insurance premiums, and other mandatory payments with the tax service.

According to current legislation, taxpayers must submit several types of documents during the reconciliation process:

  1. Reconciliation statements
  2. Document confirming the status of the payment of taxes, fees, penalties and fines 
  3. Document confirming compliance with all payments of taxes, fees, penalties and fines

External users need a tax compliance certificate. These are provided in part in order to participate in public procurement or tenders. The official authority is obliged to issue this document upon request within 10 working days. The statement confirms only whether the taxpayer has any pending arrears or not.

If you need confirmation of the amount of arrears, another document is required. This is the tax payment statement, which confirms the amount of arrears or overpayments.

However, detailed information about taxes and fees is indicated in the reconciliation statement. The procedure for reconciling taxes, fines and other payments enables you to determine whether all payments have been made as prescribed by law. It also confirms whether there are any pending arrears, overpayments, or penalties.

To obtain any of these documents, you should contact the tax office where you are registered and request the document you need. However, there are situations when reconciliation with the tax office is mandatory. For example, this may be required for major taxpayers. Also, mandatory reconciliation is performed during the liquidation or reorganization of a company and when it is deregistered. This procedure is necessary if the company changes its tax office or if the payer requires it.