Transfer Pricing

The Ministry of Finance of the Russian Federation and the Russian Union of Industrialists and Entrepreneurs have agreed on a new version of the amendments to the Tax Code of the Russian Federation regarding transfer pricing. More about the new law.

Many businesses in Russia have used to shifting profits offshore and reducing their tax liabilities through fairly straightforward transfer pricing techniques, which you would rarely see in developed jurisdictions that have been following the OECD Transfer Pricing Guidelines for decades.

There is no question that Russia should adopt and implement these international standards in order to both protect the tax revenues and create a more competitive and transparent country-wide market, and indeed there are myriad solid and objective arguments in support of such policy.

Arseny Seidov
Arseny Seidov
partner, Baker & McKenzie