Russian Railways Company

A simple partnership formed with two Russian companies and one Chinese company’ cooperative participation planned to join forces to launch a railway construction project jointly with Russian Railways, for which each participant contributed their share of the costs/assets. Our client was a Russian company, which is a partner conducting common affairs, tax and accounting for the entire partnership.
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We prepared recommendations on accounting, the procedure for preparing documents, making settlements, tax consequences of transactions for partners, the procedure for VAT refunds, an analysis of emerging tax risks for partners and the partnership, considering the participation of the Chinese participant and based on the disagreement of the Chinese participant with the procedure for joint work and joint accounting. We additionally considered the risks of a Chinese organization in the emergence of a permanent establishment for the calculating income tax purposes.
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During the project, we developed a legal position on the activities of a simple partnership, which was formed during lengthy mutual agreement procedures with all partners. Also, a draft tripartite document and an accounting methodology were prepared.

Over 4 million rubles