HOW TO REPORT CFCS IN 2026

AND AVOID PENALTIES

Russian tax residents are required to report annually on their participation in or control over their Controlled Foreign Companies (CFCs).

At the same time, reporting rules have changed multiple times in recent years, while the cost of mistakes remains high: penalties for violations may amount to millions of roubles.

We have prepared a practical guide to help you understand which notifications and documents must be prepared and what requires particular attention when filing CFC reports under Russian rules this year:

• Which CFC financial year must be reported
• Which violations trigger penalties
• What has changed in the fixed CFC profit rules

We also separately outline which documents should be prepared if:

• The CFC generated a profit or a loss
• It is necessary to substantiate the application of tax reliefs

We would be happy to assist both with analysing your situation and with preparing and filing tax reports on a turnkey basis.

If you have foreign companies, we recommend not postponing preparation and starting document collection in advance. Based on our experience, gathering all required documentation may take more than a month, while the deadline is approaching for both companies (20 March) and individuals (30 April).