Transfer pricing in Russia

Transfer pricing in Russia at a glance Transfer pricing in Russia

Regulation Type National regulations based on OECD
Are there specific transfer pricing regulations? Yes
Submission deadline May 20th of a calendar year
Submission deadline upon request 30 days
Annual update required Yes
Official language requirements Russian
Potential impact of penalties A fine of 40% of the unpaid tax

Russian tax law

Rules for transfer pricing in Russia are based upon:

  • Tax Code of the Russian Federation part 1, Section 1
  • Federal Law No. 227-FZ of 18 July 2011
  • Letter of the Federal Tax Service of 30 August 2012 No ОА-4-13/14433@
  • Order of the Ministry of Finance of Russia 
No MMB-7-13/524@ of 27 July 2012


Russia is not an OECD member state but its recent rules for transfer pricing are largely based on the OECD Transfer Pricing Guidelines.

Controlled transactions and thresholds

According to the Russian Transfer Pricing Rules starting from the year 2014 all cross-border transactions with related parties shall be subject to transfer pricing control and disclosure regardless of their volume. However, in 2012 and 2013 the cross-border transactions are subject to disclosure and control only if the total proceeds from such transactions involving the Russian taxpayer and a related party exceed RUB 100 million (approx. EUR 2 M) and RUB 80 million (approx. EUR 1.6 M) correspondingly.

Starting from 2014 domestic controlled transactions – except for some exceptions – are subject to disclosure and control if the total proceeds from such transactions involving the taxpayer and a related domestic party exceed RUB 1 billion (approx. EUR 2 M).


Accepted methods

Accepted methods are:

  • The comparable market price method (same as the comparable uncontrolled price method (CUP) under OECD Guidelines)
  • The resale price method
  • The cost plus method
  • The comparable profits method (same as the transactional net margin method)
  • The profit split method

Priority of methods

Rules for transfer pricing in Russia prescribe that the comparable market price method (CUP method) is the primary method and this method should always be examined.

Transactions involving a resale of goods should be examined using the resale price method.

The profit split method may be used, in particular, where it is impossible to use the other methods and where the parties to a tested transaction use rights in intangible assets that substantially influence the level of the profit margin.

It is possible to apply a combination of two or more methods.

Documentation requirements

Under current rules for transfer pricing in Russia, transfer pricing Documentation is a set of documents or a single document prepared in a free form with the following sections:

  • Information regarding the activities of the taxpayer which concluded a controlled transaction/transactions (including market analysis)
  • A list of parties (indicating the states and territories of which they are residents) with whom the controlled transactions were concluded
  • A description of the controlled transaction and the conditions thereof, including a description of pricing methods and the commercial conditions of that transaction, etc
  • Information concerning functions, used assets and assumed risks of the parties of controlled transaction (so-called functional analysis)
  • Information concerning the choice of the most relevant transfer pricing method and the computation of the market price range, including
    • An explanation of the reasons for the choice of method used and the manner in which it was applied
    • An indication of information sources used
    • A computation of the market price range (profit margin range) for the controlled transaction with a description of the approach used to the selection of comparable transactions
    • The amount of income (profit) received and (or) the amount of expenses (losses) incurred as a result of the controlled transaction, and the profit margin obtained
    • Information on the economic gain received from the controlled transaction
    • Information on other factors that might influence the price
    • Information on adjustments to the tax base

In any case the level of detail of the transfer pricing documentation should correspond to the complexity of the transaction and the applicable pricing policy.


All documentation should be in Russian. If documentation is not in Russian, a translation should be made available.

Requirements to prepare documentation annually 

Rules for transfer pricing in Russia do not require that documentation should be updated annually. However, taxpayers are required to perform a benchmark study on a yearly basis. 

Submission deadline upon request by tax authorities

Notification (declaration) of controlled transactions shall be submitted to the tax authority not later than May 20 of the next year.

Transfer pricing documentation should be submitted to the tax authorities within 30 days from the date of receiving the appropriate request.

Advance Pricing Agreements


For large taxpayers (meaning taxpayers that comply with some requirements, such as annual tax payments exceeding RUB 1 billion, annual revenue and assets exceeding RUB 20 billion etc.) it is possible to obtain an Advance Pricing Agreement (APA) in Russia. The concluding of APA’s is still not widely distributed in Russia due to administrative complications. Only few APA have so far been concluded.


APA’s in Russia are generally agreed upon for a period of three years. This term may be extended for additional two years, if requested by the taxpayer.


Underpayment of tax as a result of applying transfer prices that are not compatible with the arm’s length principle could lead, in addition to payment of the amount of tax, to a fine of 40% of the unpaid tax, but not less than 30,000 Roubles. By contrast, the standard fine tax underpayment is 20% of the unpaid amount of tax.

Unlawful failure by a taxpayer to submit the notification of controlled transactions or indication of inaccurate information in such a notification could result in a fine of 5,000 Roubles. Importantly, such failings of taxpayer fact could trigger a transfer pricing audit. | the global transfer pricing reference guide