Anton Oussov, Partner and Head of KPMG's Oil & Gas Practice in Russia and the CIS comments on the readiness of the Russian oil & gas sector for the new de-offshorisation requirements.
The new taxation rules for Russian and foreign companies come into force on 1 January 2015, stipulating that entities and individuals submit their tax statements prepared in accordance with the new requirements by 1 April 2015. This leaves little time for companies to review their readiness for the new rules and adapt accordingly. "It looks like the transition period is going to be anything but simple: the procedure is new and not yet debugged, and the effect of the new legislation has not been fully evaluated. One thing is clear: companies have no choice but to fulfil their tax obligations, i.e. pay taxes. Yet how can companies adapt their structures so that the tax burden is not comparable to their profit? This is the question to be answered by the oil & gas sector and the tax experts in the near future."