Russian trusts: helpsheet for a trustee

Following the introduction of controlled foreign corporation rules in 2015, the way trust were used by Russian taxpayers was met with uncertainty. Ayshat Gaydarova, associate at Withers, outlines the most common queries around trust structuring options from a tax perspective

The last couple of years have seen a period of uncertainty around the use of trusts for Russian tax residents following the introduction of Russian controlled foreign corporation (CFC) rules in 2015. They lacked the clarity and guidance to provide assurances for clients and trustees resulting in some agonising choices and a reluctance to actively plan.

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