How to use a CFC for software development without violating the laws of the Russian Federation?

Question

Freelance

I want to use the CFC for remote software development, paying taxes honestly and not violating the laws of the Russian Federation. As far as I understand, the best option would be like this. Register a legal entity in Hong Kong (I own 100% of the shares, I am the director, but without the status of an employee and without a salary). Open a corporate bank account in Singapore, because there, in my opinion, the best banks. Further, conclude fixed-price contracts in English for software development with counterparties from Australia, New Zealand, Canada, fulfill them, and receive money. Since all commercial activity will essentially be reduced to the provision of engineering services, CFC will be recognized as passive. Therefore, it is necessary to ensure that the total annual revenue of the CFC does not exceed 10 million rubles (since the legal entity will have practically no expenses,
You need to report honestly and on time to the Russian government about your CFC every year. As far as I understand, there is no need to declare profit, because it is less than 10 million rubles a year. Next, you need to register an individual entrepreneur in Saratov and annually buy a patent for software development (in Saratov, such a 12-month patent costs 10,200 rubles). Further, for each of the contracts that my CMC successfully completed for counterparties from Australia, New Zealand and Canada, it is necessary to conclude a strictly identical contract on behalf of my CFC with my individual entrepreneur in Saratov and immediately execute it by transferring money to Saratov. To pass currency control, you need to duplicate your English-language contract with a Russian-language one. Contracts concluded between CFC in Hong Kong and counterparties from Australia, New Zealand, Canada must allow outsourcing of work to other entrepreneurs so that my IP can fulfill them.
Thus, all my expenses will be reduced to 10,200 rubles per year + approximately $1,900 per year for the secretarial and audit services of the CFC in Hong Kong. And, moreover, these 10,200 rubles a year can be returned to yourself with tax deductions (due to the acquisition of real estate, due to dental treatment in a paid clinic, or due to other reasons). Tell me, is this scheme legal, are there any violations of Russian laws? I want everything to be legal.
update. As far as I understand, the requirement "not to exceed the revenue threshold of 10 million rubles" is superfluous, since the legal entity will either be unprofitable in accounting or extremely unprofitable in accounting.

Answer 1

Tell me, is this scheme legal, are there any violations of Russian laws?
First, it is immediately clear that this is a scheme. And it was done only in order to work with foreign clients, receiving funds to an account outside the Russian Federation and paying a minimum in the Russian Federation. So there will likely be complaints. Which ones, it's hard to say. They can simply be reclassified as dividends. This is the easiest option.
Secondly, all my expenses will be reduced to 10,200 rubles a year -
this is not so. You still have to pay insurance premiums. in 2019 RUB 36,238 for individual entrepreneurs
On a patent, insurance premiums cannot be deducted, that is, a plus.
No deductions (real estate, treatment-training) are also applied. This is only for personal income tax 13%
Thirdly, if it's not a secret, why open a KMC? IP on PSN can work with foreign customers. If due to currency control, then you will have an agreement with a foreign company, where you are the only beneficiary. And how the bank will react to this in the current situation is unknown. And then the tax can check. Isn't it easier to conclude five contracts with real clients than to prove it later.
Fourth, look at what kind of reporting you need to provide for CFC. They may well request a conclusion on the absence of profit. These are additional costs for translation, at least.
Fifth, I hope you have studied taxation in Hong Kong. In addition, if there are disputes with clients, then whose legislation to apply, where to sue, etc.
I don’t even ask, but I understand that you live (registered) in Saratov, the contract with KIK will be for software development, and not for something else.
Otherwise, taxes will be imposed according to the OSNO, and you will pay 33%

Answer 2

For most foreign jurisdictions, it is difficult to open a bank account if you are a non-resident. Study this issue in detail before opening a company
. I could be wrong, but it seems that even if the company has a profit of less than 10 million rubles, it still needs to be submitted annually to the Federal Tax Service of the Russian Federation, while the tax clearly needs to somehow make sure that the data is correct (documents must be certified for sure)
In the Tax Code of the Russian Federation, there is about reporting. Better check with your tax office.
www.consultant.ru/document/cons_doc_LAW_19671/e423...