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Mikhail Begunov, attorney-at-law and partner at Tax Compliance, tells how the peculiarities of income taxation for controlled foreign companies will change from 2021.

Time limits for sending tax claims Starting from April 1, the tax claim must be sent to the taxpayer not later than three months from the date of detection of the deficiency. This applies to small entrepreneurs who have low debts. - Federal Tax Service will refuse to quickly collect small debts," said lawyer and managing partner of the law firm Tax Compliance Mikhail Begunov. - Thus, notifications of tax payments of 500 to 3000 rubles to organizations and individual entrepreneurs will be sent by tax authorities within a year. That is, businesses will have more time to pay low debts. It will be more difficult to block the account, and the installment period will be extended. From April 1, FTS will be able to block the account of individual entrepreneurs and organizations only if the debt exceeds 3000 rubles. Previously, individual entrepreneurs more than once faced a situation when they lost access to their money for a very small debt. - This is also a positive innovation for business, eliminating the situation when accounts are blocked due to small debts," says Mikhail Begunov. - Another positive change is that the Federal Tax Service now has more opportunities to provide installments for tax debts. However, the interest will double. There will be new inspections of heavily indebted. The Federal Tax Service will have more power to collect arrears in the amount of more than 1 million rubles (if the requirement is not fulfilled within ten working days). The taxmen will be able to inspect the territories and property with the company's permission, as well as to claim documents out of the inspection. - This change indicates the rate of recovery of large debts to complement the budget, and most likely the tax authorities will actively apply the new powers," says Mikhail Begunov.

IEs and legal entities are obliged to pay the taxes stipulated by the selected tax regime from the rental income. Legal entities - income tax and VAT, IE - UTII (Unified tax on imputed income) or STS (Simplified Tax System) at the rate of 6% or 15%, depending on the selected object of accounting. For an individual, this income is subject to personal income tax. However, if there are circumstances that indicate the commercial nature of an individual who does not have the status of an IE, this income must be paid VAT," - said managing partner of the law firm Tax Compliance Mikhail Begunov. Recently, inspections of non-residential facilities owners, who lease them, have become more frequent, said Begunov. The inspections result in fines and penalties, as well as bringing an individual to administrative and possibly criminal responsibility. "A series of additional charges for VAT followed after the Supreme Court of Russia in July last year, confirmed that a citizen must pay VAT if he is engaged in commercial activities for renting their own non-residential facilities without registration as an individual entrepreneur. In particular, they are aimed at making profit, i.e. acquiring property for its subsequent use for profit, as well as the systematic generation of this income," said the lawyer of Tax Compliance. He explained that the one-time nature of the transaction in itself does not indicate the business activity of an individual.