The issues of determining preparatory and auxiliary activities of the foreign organization in the Russian Federation: the analysis of national legislation and international sources

The subject of the study is tax issues of foreign companies doing business in the Russian Federation through a permanent establishment. The object of the study is the concept of preparatory and auxiliary activities. This category is of interest as an exception in which the activities of a foreign organization do not lead to a permanent establishment, and therefore is often used by foreign organizations for tax evasion. The relevance of the study is confirmed by the interest of one the leading world organizations dealing with taxation issues: in October 2015 OECD published a report covering counteractions to the dilution of the tax base by avoiding the status of a permanent establishment (within BEPS plan). At the same time, in the opinion of OECD, one of the main ways to achieve the set goal is the abuse of the concept of preparatory and auxiliary activities by foreign companies. The author considers the differences in the regulation of preparatory and auxiliary activities at the international and national levels, analyzes the problems of application of the rules governing this activity. Despite the fact that the rules of the Russian tax law and international sources have much in common, however, it is not possible to say that both levels of regulation of preparatory and auxiliary activities are characterized by common problems. Still, there are some difficulties inherent in both regulation levels.

tax, taxation, tax law, international tax law, permanent establishment, preparatory and auxiliary activities, the Tax Code, Agreement on the Avoidance of Double Taxation, entrepreneurial activity of foreign organizations in the Russian Federation

1. Викулов К. Е. Правила налогообложения иностранных организаций, действующих через постоянное представительство: опыт ОЭСР и правовое регулирование в России : автореф. дис.. канд. юрид. наук. - М., 2011.- С. 25.

2. Коннов О. Ю. Понятие постоянного представительства в налоговом праве : дис.. канд. юрид. наук. - М., 2001. - С. 185.

3. Полежарова Л. В. Механизм устранения международного налогообложения организаций в Россий ской Федерации и пути его совершенствования : дис.. канд. экон. наук. - М., 2006.- С. 163.

4. Reimer E., Urban N., Schmid S. Permanent Establishments. A Domestic Taxation. Bilateral Tax Treaty and OECD Perspective. - Walters Kluwer, 2010. - P. 91-95.