Accounting | Law Center Jurconsult

Accounting

Your partner LCJ offers more than 25 years of experience in accounting services. © pauline – pixelio.de

Having over 25 years of experience with foreign enterprises, Jurconsult Law Group offers a full range of services including tax advisory, accounting services and human resources. In addition, we provide full range of support activities both at the time of operations establishment as well as during the liquidation of a foreign subsidiary. At the request of our client, we are able to offer personnel records audit, payroll preparation and reporting to the Social Insurance Fund, the Federal Tax Service and the Pension Fund of the Russian Federation (including individual accounting; record keeping; plant, property and equipment; intangible assets etc.). Financial statements and foreign enterprise records will be made available for review in required format to local subsidiaries and the main office of a foreign company in the country of incorporation.

Accounting, Bank Account Management and Payroll

We also offer our clients accounting, bookkeeping, payroll and payment outsourcing services in Russia. A Representative office of a foreign company is engaged in business activities in the Russia and has proprietary rights to movable and immovable property. According to Federal Law N-402-FZ “On Accounting”, a Representative offices must adhere to the requirements of this Law, meaning that they are obligated to keep and submit accounting statements. However, the Law allows foreign Representative offices not to maintain accounting records if taxable items are accounted for in full, but the document does not mention anything about not needing to submit accounting statements. Currently, the representative office is keeping tax accounting in full for computation of all taxes subject to payment in the Russia.

A Representative office may keep accounting records using the rules established in the country where the foreign company is located if such rules do not contradict International Accounting Standards (hereinafter–IAS) developed by the Committee for international accounting standards. According to Federal Law “On Accounting” a Representative office has the right not to keep accounting records based on the rules outlined in Law N402-FZ if, in compliance with Russian laws about taxes and duties they keep track of income and expenses and/or other taxable items in a manner determined by the said laws.

The Tax Code of the Russian Federation a Representative office of a foreign company engaged in business activities is obligated to keep accounting records of its income and expenses in accordance with chapter 25 of the Tax Code of the Russian Federation, submit to a tax authority an annual report about its activities in the Russian Federation and declaration.

The representative office is obligated to maintain accounting records for its fixed assets. That is to say that according to clause 2 Article 374 of the Tax Code of the Russian Federation, movable and immovable property items considered to be fixed asset items are recognized as taxable items of the property of companies operating in the Russian Federation through permanent representative offices. However, for the purposes of chapter 30 of the Tax Code of the Russian Federation regulating taxation of property owned by companies, foreign companies keep accounting record of taxable items in a manner established in the Russian Federation for accounting-record keeping.

Therefore, it is not obligatory for a representative office of a foreign companies to submit accounting statements to tax authorities of the Russian Federation based on the forms and in the manner established for Russian companies.