BGP Litigation senior associate Denis Savin commented for Interfax internal news feed on the possibility to consider costs of head offices of a foreign company in calculation of profits of its Russian branch

«"The deduction of expenses incurred by the head office related to the permanent establishment of the company will be allowed to include in the determination of the branch profits of a German company in Russia, including in some other place. In this case, the inspection requested documents not from those organizations for which the works were performed by the non-residents. All documents on the remuneration of employees of the parent company working in the interests of the Moscow representative office are prepared in accordance with the bookkeeping rules in Germany. Therefore, if properly prepare all documents, claims will be easier to fight off", says BGP Litigation senior associate Denis Savin».