Consulting an individual on CFC taxation (company in the UAE)

UAE

The REVERA Private Clients team advised a Russian citizen and tax resident planning to establish a business structure in the United Arab Emirates on issues related to the disclosure of foreign assets, ownership structuring, and compliance with Russian legislation on controlled foreign companies (CFC).

As part of the project, the specialists conducted a preliminary analysis of the planned corporate structure in terms of CFC signs and tax residency, analyzed the projected profits, and assessed the potential for applying the CFC tax exemption under Article 25.13-1 of the Russian Tax Code. They also developed an ownership model considering CFC exemptions and a safe approach to reporting, and provided recommendations on the format and timing of notifications to Russian tax authorities.

As a result, the client successfully created a transparent and legal international structure without the risk of tax sanctions and in compliance with legal requirements.