‘Taxes Delivered Twice’ – Kommersant Article by FBK Legal Partner Eduard Giulbasarov

The latest issue of the ‘Legal Business’ supplement to Kommersant newspaper features an article by Eduard Gyilbasarov, FBK Legal Partner, titled ‘Taxes Delivered Twice’. The article addresses the complex taxation of payments for international transport services. It delves into typical claims raised by tax authorities and outlines legal approaches that can help taxpayers strengthen their position. Furthermore, the piece highlights emerging issues that have yet to be resolved in official guidelines or court practice.

Eduard Giulbasarov writes:

Following the suspension of certain double taxation treaties in August 2023, Russian companies are facing new tax risks when working with foreign carriers and freight forwarders. Tax authorities are now treating forwarders' fees as including a portion of the transportation income, thereby subjecting that portion to taxation. At the same time, Russian civil law clearly distinguishes between contracts for carriage and forwarding services, and courts often recognise that income from forwarding services should not be taxed even if transportation is only part of a service package. Federal Law No. 539-FZ introduced a transition period until the end of 2025, allowing companies to refrain from withholding tax on contracts concluded before August 2023. However, applying this exemption is challenging due to strict documentary requirements and inconsistent enforcement by tax authorities. As a result, businesses are forced to meticulously document their transactions and carefully structure contracts to minimise tax risks and potential litigation. While the legislator attempts to mitigate the impact, it leaves significant uncertainties unresolved.

The full text of the article is available on the Kommersant website.