Legal Basics of Taxation of Foreign Entities in the Russian Federation

This research is devoted to the problems of taxation of foreign organizations. The main attention is paid to legal status of foreign organizations in the Russian Federation and to the specialties of tax regulation of their permanent establishments’ status. History of taxation of foreign entities forms the basis of this investigation. The research includes examination of types of permanent establishment and the moment of its origin. One of the most questionable points of foreign companies’ taxation in the Russian Federation and also in other countries is the problem of elimination of double taxation which is investigated in this work. The main reasons and the possible solutions of this problem are offered by the author. Besides, significant attention is paid to the questions which can arise on practice such as the order of registration of permanent establishment, specialties of tax accounting. Value Added Tax and Corporate Profit Tax paid by foreign entity are analyzed, order of taxation, its advantages and disadvantages are studied.