The Place of Norms Regulating Taxation of Foreign Organizations not Operating in the Russian Federation in the System of Financial Law

Abstract

Russian legislation establishes a special procedure for taxation of foreign organizations that do not operate in the territory of the Russian Federation, but receive income from Russian sources. When paying income to foreign organizations, Russian organizations may be obligated to pay both an income tax and VAT. The regulation of a taxation procedure applied to foreign organizations paying taxes from Russian sources is complex and covers the norms contained both in national legislation and in international agreements devoted to avoidance of double taxation. Despite the fact that a considerable number of works written by scholars and practitioners are devoted to certain aspects of taxation of foreign organizations, at present insufficient attention is paid to the nature and place of norms establishing the taxation regime for foreign organizations not operating in the Russian Federation. At the same time, a misunderstanding regarding the nature and place of the norms under consideration in the system of Tax Law of the Russian Federation can lead to incorrect law enforcement in the field of taxation of foreign organizations’ income that they receive from Russian sources. The author has analyzed the applicable legislation and viewpoints of scientists on this issue, and on their basis he has made a conclusion about the composition and place of the abovementioned norms in the system of Tax Law of the Russian Federation.