Federal Tax Service of Russia to Assess the Performance of Organisations and Individual Entrepreneurs

How the assessment will be conducted: the methodology for business assessment is still being developed. The Federal Tax Service of Russia is expected to publish a draft order outlining this methodology shortly. When developing the methodology, it can be assumed that the criteria already used in the automated ‘Legal entity assessment service’ available in the taxpayer's personal account will be taken into account. Currently, extracts from the service are recommended for use in procurement procedures to obtain reliable information about potential contractors.

Purpose of the assessment: the assessment results will be used, among other things, to ensure the safe expenditure of budgetary funds allocated for fulfilling state defence orders, as well as in cases when executive bodies perform their functions, such as granting regional tax benefits.

How to obtain assessment results: the Federal Tax Service of Russia will provide the results of the automated assessment in the form of an extract upon request from the taxpayer themselves or other persons in cases provided for by law. Should the taxpayer disagree with the assigned assessment, they can submit a request to adjust the analysis results supported by relevant documents.

Key points to note:

1.       Companies and individual entrepreneurs will be able to present the results of the analysis conducted by the FTS of Russia to customers to confirm their business reputation, including when preparing proposals for determining a sole supplier (contractor).

2.       To interact effectively with counterparts and the state, businesses will need to regularly analyse the assessment result extracts and, if necessary, submit requests for their adjustment (to avoid negative implications such as restrictions on participation in procurements or denial of tax incentives).

3.       Persons who have submitted a request to the FTS of Russia will be able to use the results of the assessment of companies and individual entrepreneurs as a source of reliable and relevant information about their financial and economic activities and other information.

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