• Date: 7/29/2012

Controlled transactions 

The amendments to the Russian Tax Code (hereinafter “Tax Code”), effective 1 January 2012, subject prices in transactions between related parties as well as other similar transactions to tax control.

Whether or not a transaction is controlled depends on the following factors:

  • relationship between counterparties;
  • subject of the transaction;
  • tax residence of the counterparties;
  • tax treatment of the counterparties;
  • amount of income under all transactions between the parties involved in the transaction.


The Tax Code provides for transitional provisions for 2012-2013, limiting the list of controlled transactions.


The table below is a list of transactions that are recognized by the Tax Code as controlled. Transitional provisions are taken into account.


Controlled transaction

Volume limits subject to control:



2014 and further

Cross-border transactions

between related parties

No limit

with commodities quoted on exchanges

RUB 60 mln (approx. USD 1.8 mln)

with counterparties that are residents of “black-listed” off-shores

Domestic transactions

between related parties

RUB 3 bln (approx. USD 92 mln)

RUB 2 bln (approx. USD 61 mln)

RUB 1 bln(approx. USD 30 mln)

between related parties if one party:

  • pays the mineral extraction tax

RUB 60 mln (approx. USD 1.8 mln)

  • resides in a special economic zone

is not subject to TP control

RUB 60 mln (approx. USD 1.8 mln)

  • is subject to a special tax regime (unified agricultural tax or unified tax on imputed income)

is not subject to TP control

RUB 100 mln (approx. USD 3.1 mln)


For the transitional period the Tax Code’s provisions for notifying and preparing TP documentation with respect to controlled transactions as well as performing tax control are applicable only if the total income for all of the taxpayer`s controlled transactions with the same counterparty (same counterparties) during the calendar year exceeds:

  • for 2012 – RUB 100 mln;
  • for 2013 – RUB 80 mln.


The Tax Code also contains provisions for certain cases where transactions between the related parties are recognized as uncontrolled. Specifically, prices in the transaction are not subject to control if:

  • parties to the transaction are members of the same consolidated group of taxpayers;
  • parties to the transaction meet all the following requirements:
    • are registered only in one region of the Russian Federation;
    • have separate divisions neither in other regions of the Russian Federation nor outside the Russian Federation;
    • do not pay corporate income tax to budgets of other regions of the Russian Federation;
    • do not have losses (including losses that are from previous years and are carried forward to future tax periods) taken into account for corporate income tax purposes;
    • are not exempt from paying corporate income tax / do not apply a 0% rate for corporate income tax / are not residents of a special economic zone / are not mineral extraction taxpayers applying a percentage rate / are not taxpayers of the unified agricultural tax or, the unified tax on imputed income.


Graham Povey

Graham Povey

Partner, Head of Tax & Legal in Russia and the CIS

+7 495 937 4477