News

"The relationship between China and Russia is now experiencing its highest positive point in history. Economic and fiscal, trade, and investment cooperation between the two countries is growing both quantitatively and qualitatively, with impressive results and promising prospects," said Gao Qi, Chief Representative of the China Council for the Promotion of International Trade (CCPIT) in Russia, at the opening of a workshop in Moscow.

He also noted that the event aims to identify trends and provide practical recommendations for government and business stakeholders to help enhance bilateral trade, economic, and business relations. The pursuit and development of joint solutions to improve tax cooperation between our nations is consistent with modern challenges and the BRICS cooperation agenda.

The Union of Chinese Entrepreneurs in Russia represents more than 4,000 business entities. Zhou Liqun, Chairman of the Union of Chinese Entrepreneurs in Russia, stated that in recent years, there has been an increase in Chinese enterprises' interest in working in Russia. He noted that Chinese colleagues are interested not only in methodology, but also in risk analysis for international economic operations such as intra-group services, logistics, and transactions with associated entities.

Alexandra Kadet, Head of the International Taxation Directorate of the Russian Federal Tax Service, also emphasized the increase of economic cooperation between Russia and China. More than 9 thousand taxpayers with Chinese involvement and permanent representative offices of Chinese enterprises will be established in the Russian Federation in 2024, a 37% increase from 2022.

In these conditions, issues related to tax administration arise inevitably. "It is essential to have information not just throughout the business process, but also while making investment decisions. Therefore, we must create platforms for open dialogue not only between our tax administrations but also for keeping our taxpayers informed," emphasized Alexandra Kadet.

The subjects for discussion were chosen based on queries posed by Chinese business representatives. FTS experts spoke on tax risks in cross-border transactions, capital movement control, transfer pricing, its changes and associated risks, electronic data interchange and its benefits, as well as customs valuation and law enforcement practice.

The event was attended by representatives from over 100 companies from Russia and PRC, while 422 Chinese companies participated in the online broadcast. 

The organizers included the Federal Tax Service of Russia, the State Taxation Administration of China’s Heilongjiang Province, the CCPIT Representative Office in Russia, the Institute of China and Contemporary Asia of the Russian Academy of Sciences, the National Coordination Center for International Business Cooperation, and the Tax Compliance law firm.

The event was held as part of the initiative of the BRICS tax authorities' leaders, who agreed at the September 2024 meeting in Moscow to establish a BRICS Tax Services Network to support taxpayers engaged in foreign trade within the BRICS member states.