Federal Law No. 25-FZ amending the thin capitalization rules was passed by the Parliament on 15 February 2016. As per the amended thin capitalization rules, interest on loans from banks and Russian companies will not be subject to the thin capitalization rules, under certain conditions. The Law No. 25-FZ also extends the scope 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. The law sets forth that the interest expenses, which are not deductible for corporate income tax purposes under the thin capitalization rules, qualify as dividends and are taxed accordingly. The law will enter into force on 1 January 2017.
Related Posts
Russia reminds taxpayers of controlled transaction notification obligations
May 07, 2026
Russia’s Federal Tax Service (FTS) has reminded taxpayers that notifications of controlled transactions for 2025 must be submitted no later than 20 May 2026. Under paragraph 8 of Article 105.15 of the Tax Code of the Russian Federation,
Read More
Russia approves tax code amendments on digital currency, digital rights regulation
May 04, 2026
The Government of the Russian Federation has approved amendments to the Tax Code at a government meeting held on 29 April 2026, aligning its provisions with a draft federal law establishing comprehensive regulation for the organisation and
Read MoreRussia: Central bank cuts key rate on easing price pressures
May 04, 2026
The Board of Directors of the Bank of Russia on 24 April 2026 decided to cut the key rate by 50 basis points to 14.50% per annum, citing easing underlying price pressures and the economy’s gradual return to a balanced growth path. However,
Read MoreRussia: VAT return for first quarter must be filed using revised form
April 24, 2026
The Russian Federal Tax Service has reminded taxpayers, on 17 April 2026, that the VAT return for the first quarter of 2026 must be submitted using the updated form, with the deadline for submission set for 27 April 2026. The relevant order of
Read More
Russia, China sign tax cooperation memorandumÂ
April 24, 2026
Russia's Federal Tax Service announced on 21 April 2026 that Russia and China have formalised their collaboration through a Memorandum of Understanding signed by Daniil Egorov, Head of Russia's Federal Tax Service, and Hu Jinglin, Head of China's
Read More
Finland: Government approves suspension of law enforcing Russia tax treaty
April 21, 2026
Finland’s government approved a proposal to suspend the domestic implementing act of the Finland–Russia Income Tax Treaty (1996), as amended on 16 April 2026. The proposal has been submitted to parliament for consideration. Finland has
Read More