The EasyTax solution, which currently covers more than twenty-five jurisdictions, will be expanded by a new offshore country module for Russian client tax reporting. With a ready-to-use version for the fiscal year 2019, the new module will enable banks to produce Russian tax reports and to provide their Russian clients with a service to facilitate their Russian tax filing duties.
The new add-on to BearingPoint’s standard reporting solution EasyTax will include the standard scope of instruments and transactions EasyTax users are accustomed to. The module will provide relevant information on investment portfolios for bank clients who are taxable in the Russian Federation.
The Russian tax law poses multiple challenges. For instance, securities and derivatives must be qualified via certain instructions established by the Central Bank of Russia. The different treatment of marketable as well as non-marketable securities and derivatives deserves special attention, since it determines the deductibility of expenses from taxable income. Therefore, BearingPoint works closely with a Big 4 tax advisory partner to address important details and to be able to implement Russian tax rules in the software solution. In this way, the software can be kept up to date according to upcoming regulatory changes. The importance of the Russian client tax reporting module is currently considered to be high, in particular since a second tax amnesty has become effective very recently after the first tax amnesty was established three years ago.
Considering the growing significance of Asian markets and new economic ties in Eurasia, the client tax reporting solution for Russia is not the only measure in BearingPoint’s mission to stay ahead in this business environment. The module will be released in 2020 and follows the module for China. Modules for India and Japan are currently in the pipeline.