As of 12.07.2024, there is a tax amnesty for taxpayers who voluntarily refuse to split a business.

Business splitting – division of a single entrepreneurial activity between several formally independent persons (organizations, individual entrepreneurs, in respect of which control is exercised by the same persons, aimed exclusively or predominantly at understatement of tax amounts by applying special tax regimes with exceeding the limits of exercising the rights to calculate the tax base and (or) the amount of taxes provided for by Article 54.1 of the Tax Code of the Russian Federation. (The term is introduced by the Federal Law of 12.07.2024 N 176-FZ).

How the amnesty will work

The amnesty will be available to taxpayers whose activities revealed the fact of artificial splitting of business in 2022-2024, if as of 12.07.2024 the decision on the results of the tax audit has not entered into force.

The entry into force of such decision shall be suspended. Further, if during field audits for 2025, 2026 the tax authority does not find any signs of optimization for the period 2025-2026, then the amounts of additional charges related to the split, established by audits for 2022 – 2024, fall under the amnesty.

If the field audit for 2025-2026 establishes that the taxpayers have not abandoned the business split (or have partially abandoned it), their obligation to pay arrears for 2022-2024 does not cease (or ceases only in the relevant part). The judgment establishing the arrears for 2022-2024 will then become effective and enforceable.

If after January 1, 2025, no field audit for 2025, 2026 is scheduled, taxpayers will be exempt from liability for the period 2022-2024 from 2030.

Which payments are covered by the tax amnesty

If the amnesty is applied, a taxpayer’s obligations to pay:

  • amounts of taxes accrued for 2022 – 2024 due to business splitting. There is an exception, when the amnesty applies only to additional tax assessments for 2022 – 2023;
  • penalties accrued on these amounts;
  • penalties for non-payment or incomplete payment of such taxes imposed under Article 122 of the Tax Code of the Russian Federation;
  • penalties for gross violation of the rules of accounting for income, expenses and objects of taxation under Art. 120 of the TCRF
  • penalties for failure to submit reporting under the general taxation system, which is not submitted due to the split, which allowed the application of a special taxation regime. They are imposed under paragraph 1 of Art. 119 of the Tax Code of the RF.