New procedure for the translation into roubles of profits tax amounts when income is paid to a foreign organization

As from 31.08.23 the procedure for the conversion into roubles of profits tax withheld by a Russian tax agent when income is paid to a foreign organization has been changed.

It is now necessary to convert the amount of tax calculated in foreign currency into roubles at the exchange rate of the Central Bank of the Russian Federation on the date on which income is paid to a foreign organization, rather than on the date on which the tax was paid, as was previously the case. The new procedure applies to legal relations arising from 01.01.2023. At the same time, in its letter dated 04.09.2023 N KV-4-3/11220@ the Federal Tax Service of Russia clarified that there is no obligation to submit revised tax calculations for the periods of 2023, however, a tax agent has the right to do so.