CREATION OF PERMANENT ESTABLISHMENT BY FOREIGN CONTRACTORS WHEN PERFORMING CONSTRUCTION AND INSTALLATION PROJECTS IN RUSSIAN FEDERATION

This article examines the regulation of taxation of income / profits of foreign contractors operating in the framework of construction and installation projects in the territory of the Russian Federation. The relevance of this issue is due to an increase in the number of construction and installation projects in the Russian economy, including with the direct participation of foreign organizations. At the beginning of the article, the author explains that the issue of tax on profits from foreign organizations in the implementation of construction and installation projects depends on the presence of a permanent representative office in the territory of the Russian Federation. Then, relying on the current legislative regulation, law enforcement practice, as well as OECD comments, the author reveals the general concept of a permanent establishment, and also analyzes the concept and characteristics of a construction site in accordance with the provisions of Art. 308 Tax Code. Based on the analysis of law enforcement practice, the author concludes that, despite the presence of detailed regulation of the establishment of a permanent establishment at the construction site, both at the Russian and international level, in practice there are certain problematic issues regarding the occurrence of the construction site, which require more detailed legal understanding.

taxation, international taxation, taxes, permanent establishment, construction site, agreements on avoidance of double taxation, foreign organizations, payments to foreign organizations, construction activities, installation activities, tax liability, tax control