The Russian Federal Tax Service (FTS) recently published Guidance Letter No. SD-4-3/14590, which clarifies the consequences of a Russian tax agent's failure to withhold tax on payments to a non-resident without a permanent establishment (PE) in Russia. The letter is in reference to a Russian legal entity (tax agent) that failed to withhold tax on rental payments to a non-resident legal entity for the use of assets in Russia, but also applies to withholding tax failures in general.
According …