Hello,
I'm trying to close a deal between a China refinery and a Russian refinery ,(not re-seller). China is asking the Russian refinery to not show any commissions being paid out on the contracts. They want the Russian refinery to show the price of $480 as the mechandise price, which already includes the $10 commission to the sell side and buyer side. They're saying the government doesn't allow commissions to be paid out, so it has to be under the table. The Russian refinery is saying it's against the law not to disclose commissions being paid out on the contract.
Does anyone know where I can find this law so that I can send it to the Chinese? Or does anyone have any solutions to something like this?
Thank you,
Quoting from [Jay]:Hello,
I'm trying to close a deal between a China refinery and a Russian refinery ,(not re-seller). China is asking the Russian refinery to not show any commissions being paid out on the contracts. They want the Russian refinery to show the price of $480 as the mechandise price, which already includes the $10 commission to the sell side and buyer side. They're saying the government doesn't allow commissions to be paid out, so it has to be under the table. The Russian refinery is saying it's against the law not to disclose commissions being paid out on the contract.
Does anyone know where I can find this law so that I can send it to the Chinese? Or does anyone have any solutions to something like this?
Thank you,
Dear Jay,
there is not enought details to give you the complete advise. According to Russian tax law it doesn't matter what the final price inculdes. There can be comissions, extra fees, etc. If they can show total amount that they paid, there will be no problems. Nobody cares what is inside the price.
Regarding your second question, there is very informative website about Russian laws - www.consultant.ru. Unfortunately it's only in Russian. I haven't seen any websites like this in English.
Anyway, if you have any other questions regarding co-operation with companies from Russia, you can contact me directly.
BRGDS,
Maxim Yurin.