The lower chamber of the parliament has passed in the third reading the draft Federal Law No. 724609-6 amending the thin capitalization rules on 29th January 2016, which was submitted to the lower chamber of the parliament on 14th December 2015. It contains interest on loans from banks and Russian companies will not be subject to the thin capitalization rules, under certain conditions. The draft law also spreads the opportunity of the thin capitalization rules to include loans from foreign related parties that do not hold a direct or indirect interest in a Russian borrower and the interest expenses that are not deductible for corporate income tax purposes on the basis of thin capitalization rules, qualify as dividends and are taxed accordingly. The draft law is estimated to be entered into force on 1st January 2017, excluding for bank loans that has already exempted from January 1, 2016 and hope it is to be approved by the upper chamber and signed by the president.
Related Posts
Russia clarifies taxation of foreign companies income from digital assets
Russia's Ministry of Finance has issued guidance letter No. 03-08-13/114723 on 14 March 2025 clarifying the taxation of foreign companies' income from digital financial assets. According to the letter, digital financial assets are defined as
Read More
Russia mandates transfer pricing method in controlled transaction notifications
Russia's Federal Tax Service (FTS) issued Letter No. ШЮ-4-13/2827@ on 13 March 2025 about the notification of controlled transactions. It clarifies that from 2024, taxpayers must disclose the transfer pricing method used to justify the market
Read More Russia, Myanmar finalize talks on investment protection agreement
Myanmar and Russia issued a joint statement in Moscow announcing the conclusion of negotiations for an investment protection agreement (IPA) 4 March 2025. . Russia and Myanmar finalized the talks on a draft of agreement on encouragement and
Read More Russia keeps key interest rate at 21%
The Central Bank of Russia (CBR) announced its decision to keep the key rate at 21% on 14 February 2025. Earlier, CBR increased the key interest rate from 19% to 21%, on 25 October 2024. This is the highest key interest rate in Russia since
Read More Russia, UAE sign new tax treaty
Representatives from Russia and the UAE have signed a new income and capital tax treaty on 17 February 2025 . The treaty will come into effect after the exchange of ratification instruments, and once it is in force, it will replace the limited
Read More Russia exempts CFC profits from IHC tax base until 2029
Russia’s Ministry of Finance has clarified that international holding companies are not required to include the profits of their controlled foreign companies (CFCs) in their corporate income tax base for tax periods ending before 1 January
Read More