Legislation for international business companies
Since 2019, significant changes have been made to international legislation relating to the activities of commercial companies. These amendments concern three aspects of international business companies (IBCs):
- An international business company whose registration was carried out no later than October 16, 2017 (inclusive), according to current legislation, is entitled to receive income solely from its main line of business. The rest of the profit is subject to the appropriate tax.
- All international commercial companies with registration after October 16, 2017 (inclusive) are subject to taxation in accordance with the changes in the relevant legislation.
- Companies licensed by IFSC will be taxed from June 30, 2021. Starting from this date, the implementation of commercial activities in the former mode will be impossible.
- If assets were received from June 30, 2018, their owners are required to go through the procedure for determining their status, which is held by the IFSC. After this procedure is completed, there is a possibility of taxing existing assets.
In order for the new requirements to take effect, international regulatory authorities have authorized the introduction of a transitional period, the duration of which is 1 year. Important! This is not final information, and the above changes and requirements are subject to change by the relevant regulatory authorities.