Initial review
Legal form, types of transactions, banks, payments abroad, state of the books.
LATIN AMERICA / 13
Accounting services for the Russian company of a Latin American group
A Russian LLC or branch of a Latin American company must keep accounts under Russian rules and file reports with the Federal Tax Service (FNS). Here accounting is closely tied to law: resident or non-resident status, tax on payments to the parent company, the duties of a tax withholding agent. We keep the company's books and reports and explain the results to the owner in a language they work in.
- Practice
- Latin America
- Format
- Remotely and in Moscow; owner reports in Russian, Spanish or English
What is happening
A Chilean company has registered an LLC in Moscow and the first deliveries are under way, but there is no accountant in Russia. The owner wants to know which taxes the company pays and which reports it files, and to receive this information in Spanish.
The Russian LLC of a Mexican group is about to pay dividends and a management fee to its parent. It needs to know how much tax to withhold on each payment and what to request from the recipient before the money is sent.
The Moscow branch of an Argentine company is in its second year and its previous accountant has left. Someone has to take over the books, check the balances and work out what obligations the branch has as a non-resident.
What the law says
- Federal Law No. 402-FZ of 06.12.2011 on Accounting requires Russian organisations, including LLCs with foreign shareholders, and the Russian branches and representative offices of foreign organisations to keep accounts, unless an international treaty provides otherwise. Accounts are kept in roubles.
- An LLC receives its taxpayer number (INN) and registration code (KPP) on state registration, without a separate application (Articles 83 and 84 of the Tax Code). The FNS sets the specific rules for registering foreign organisations, including branches and representative offices (Article 83(1) of the Tax Code; FNS Order No. ED-7-14/801@ of 25.09.2024).
- The general corporate profit tax rate is 25% (Article 284(1) of the Tax Code). From 1 January 2026 the standard VAT rate is 22% (Article 164(3) of the Tax Code as amended by Federal Law No. 425-FZ of 28.11.2025).
- On dividends paid to a foreign organisation, the Russian company, acting as tax agent, withholds tax at 15% unless an international treaty provides otherwise (Article 284(3)(3) of the Tax Code). Certain other Russian-source income of a foreign organisation not connected with a permanent establishment is generally taxed at source at 25% (Articles 309 and 310 of the Tax Code).
- A reduced rate under a double tax treaty may be applied by the tax agent only if, before payment, the recipient has confirmed its residence in the treaty country and its beneficial ownership of the income (Article 310(2)(4) and Article 312 of the Tax Code).
- An LLC with foreign shareholders is a currency control resident, while a branch of a foreign company is a non-resident (Article 1 of Federal Law No. 173-FZ of 10.12.2003 on Currency Regulation and Currency Control). This status determines the rules for settlements and the paperwork for foreign currency transactions.
What we do
- We take over the books from the company's start or from the previous accountant, checking balances, contracts, source documents and past reports.
- We keep accounting and tax records and prepare and file the financial statements and tax returns.
- We calculate tax on each payment to the parent company (dividends, royalties, services) and tell you in advance which documents the recipient must provide for a treaty rate.
- We align the books with the company's currency control status and with the paperwork for foreign currency transactions at the bank.
- We arrange translation of foreign-language documents coming from the parent company and from foreign suppliers.
- We flag the risk of a permanent establishment where an employee of the foreign company works in Russia without a Russian legal entity.
- We give the owner a clear report on results and taxes in Russian, Spanish or English, with an interpreter where needed.
- We respond to tax office requests about the reports; tax audits and disputes are handled as separate work.
What we will need from you
- The LLC charter or branch regulations, registration details and tax registration documents.
- Bank statements or access to them, contracts with customers, suppliers and the parent company.
- Source documents and previously filed reports for the period from which we take over the books.
- For payments abroad: details of the recipient, proof of its tax residence and of its beneficial ownership of the income.
- A contact person on the owner's side and the language in which you want to receive reports.
HOW THE WORK IS BUILT
How the work is built
Takeover
Check of balances, source documents and past reports; list of what needs fixing.
Working procedure
Accounting policy, document exchange schedule with the company and the parent, rules for payments abroad.
Ongoing accounting and reporting
Recording transactions, calculating taxes, filing reports.
Report to the owner
Summary of results and taxes in your language, questions on upcoming payments.
NEARBY
Other services in this practice
- Interpreters and accompaniment of company representatives
- Negotiations on the client's behalf
- Entering the Russian market: turnkey support
- Choosing a form of presence and registering an LLC
- Branch or representative office: accreditation
- Documents: translation, apostille, legalisation
- Opening a bank account and choosing a bank
- Currency control and settlements in roubles and national currencies
QUESTIONS
Frequent questions
Can the books be kept under the rules of the owner's country?
No. A Russian LLC or branch keeps its accounts under Law No. 402-FZ, in roubles. If the parent needs figures under its own rules or under IFRS, its accountant or auditor converts the Russian data; we provide the explanations and reconciliations for that.
How does accounting for a branch differ from an LLC?
A branch is not a separate legal entity and remains a non-resident for currency control, whereas an LLC is a resident. This affects tax registration, settlements with the parent and the documents the bank asks for. Choosing the form of presence before registration is a separate service within this practice.
How much tax will be withheld on dividends to the parent?
As a general rule, 15% (Article 284(3)(3) of the Tax Code). A double tax treaty may set a lower rate, but it can only be applied if proof of residence and beneficial ownership is received before payment. Russia does not have such treaties with every country in the region, so we check the recipient's country.
We already have an accountant. How can you help?
We can take on part of the work: tax on payments abroad, a review of the books, owner reports in Spanish or English. Your accountant continues with day-to-day bookkeeping, and we agree with them how documents will be exchanged.
Who is liable if tax on a payment abroad is withheld incorrectly?
The duty to withhold lies with the Russian company as tax agent, and an error leads to additional tax assessed on that company. That is why we check every payment to the parent before the money is sent, not afterwards.
NEXT STEP
Let us discuss your situation
The consultation is free of charge when an engagement agreement is signed: on it we say what has to be done and by when.