RUSSIAN FEDERATION RESIDENCY CERTIFICATE
Many companies and people have started to think globally and stopped limiting their business only to the country of residence. This raises the issue related to taxation in different countries. The double taxation agreement concluded between Serbia and Russia was signed on October 12, 1995 in Moscow.
These are the rates applied to double taxation by Russia and Serbia:
– dividends 15/5%
– interests 10%
– royalties 10%
– services 0%
– capital gain 0%.
For this rates to be applied, certain conditions need to be met and here are those conditions:
– at the moment of revenue payment, the payer shall have a corresponding certificate confirming that the revenue recipient is resident in the country with which the agreement was concluded
– non-resident shall be the factual revenue owner.
Foreigners prove that they are residents in the country, which signed DTA with Serbia, by the means of:
- POR-2 form, certified by the competent authority of the country of residence of a legal entity or
- certified translation of the certificate, issued in the form prescribed by the competent authority of the country of residence of a legal entity.
According the Law, if a domestic person enforces DTA provisions without owning a corresponding certificate, confirming that the revenue recipient is the resident of the country with which the DTA was concluded, that person shall pay the difference between payed and owed taxes.
For the purpose of simpler and faster issuance of residency certificates, in 2021, the Ministry of Finance of the Republic of Serbia (including the Tax Administration) received an official note from the competent authorities of the Russian Federation stating that the residency certificates can be issued in that country in paper as well as electronic (PDF) form for one calendar year.
The whole experience related to this is available at the following link of the Federal Tax Service of Russia: https://www.nalog.gov.ru/eng/how_to/htgrc/.
The issuance of residency certificate by the Federal Tax Service of Russia can be checked on their official webpage:https://service.nalog.ru/nrez/check.html by entering a verification code indicated on the residency certificate.
The recognition of Russian residency certificates significantly facilitates and accelerates the enforcement of the DTA concluded between the Russian Federation and the Republic of Serbia.