Belarus reduces tax rates for the High-Tech Park
Recently, Belarus reduced the tax rates on gross income for the companies’ residents of the High-Tech Park. The rate is reduced to 1% from 2%. On 7 April 2022, by the Resolution of the Council of Ministers No. 178, the rate was increased to 2%
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Russia: CBR cuts the Key Interest Rate to 8.0%
On 22 July 2022, the Central Bank of Russia (CBR) adopted a decision to cut the key interest rate from 9.5% to 8.0%. The key rate also impacts interest penalties, which are adjusted along with the adjusted key rate. For corporate taxpayers, the
See MoreUkraine issues law on tax preferences for industrial parks
On 22 July 2022, the Ukrainian State Tax Service (STS) issued a press release on tax preferences for industrial parks. The STS states that the Ukrainian Parliament adopted Law No. 2330-IX on amendments to the ‘Tax Code of Ukraine on creating
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UK plans to introduce three-tiered documentation requirements
On 20 July 2022, the UK Government published draft legislation as part of the Finance Bill 2022-23 which will make it a requirement for large multinational businesses operating in the UK to keep and retain transfer pricing (TP) documentation in a
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Russia: CBR cuts the key rate to 9.50%
On 10 June 2022, the Central Bank of Russia announced its decision to lower the policy rate after the Bank of Russia Board of Directors decided to cut the policy rate by 150 basis points to 9.50% per year. For tax purposes, the base rate is used
See MoreUkraine clarifies transfer pricing requirements under martial law
On 2 June 2022, the Ukrainian State Tax Service (STS) has published a notification that clarifies transfer pricing requirements under martial law conditions in Ukraine, taking into account of COVID-19 situation. Transfer pricing
See MoreUkraine: National Bank increases the interest rate from June 2022
On 2 June 2022, the National Bank of Ukraine decided to increase its key policy rate from 10% to 25% per annum with effect from 3 June 2022. The interest rate has a tax effect on the late tax payment interest and penalties which is equal to 120% of
See MoreEU: European Commission Proposes Tax Allowance for Equity
On 11 May 2022 the European Commission put forward proposals for a tax allowance that would reduce the current tax advantage for debt over equity. This allowance would be designed to encourage businesses to access more equity financing and reduce
See MoreRussia clarifies the criteria for transfer pricing controlled transactions
On 26 April 2022, the Ministry of Finance and Federal Tax Service (FTS) published a Guidance Letter 03-12-12/1/37761 clarifying the criteria for qualifying transactions as controlled for transfer pricing purposes. The letter states that taxpayers
See MoreRussia: CBR cuts the Key Interest Rate to 14%
On 29 April 2022, the Central Bank of Russia (CBR) adopted a decision to cut the key interest rate from 17% to 14%, with effect from 2 May 2022. Previously, the key interest rate was lowered from 20% to 17% on 8 April 2022 following the abrupt
See MoreUkraine proposes increased tax rates for companies having business with Russia
On 30 March 2022, the Ukrainian Parliament received Bill No. 7232 (Draft Law) on taxation of business entities related to economic relations with the ‘aggressor state’. Ukraine proposes corporate income tax (CIT) to be increased from 18% to 27%
See MoreEU: Public Consultation on Minimum Rates of Alcohol Excise Duty
On 11 April 2022 the European Commission began a consultation on the minimum rates of alcohol excise duty in the EU. The consultation will continue until 4 July 2022. The consultation aims to gather the views of the relevant stakeholders on
See MoreEU: Pressure on member states to revise CBI/RBI schemes
Recently there has been increased pressure on European Union (EU) member states to scale back their schemes offering citizenship or residence in return for financial contributions. This reflects heightened security concerns in view of the current
See MoreRussia extends the 0% CIT rate for cultural institutions
On 26 March 2022, Russia published Federal Law No. 68-FZ on Amendments to Articles 284 and 284-8 of Part Two of the Russian Tax Code. Under the amendments, the corporation tax rate of 0% applies retrospectively to 1 January 2022 for cultural and
See MoreRussia raises the threshold for controlled transactions
On 22 March 2022, the Russian Parliament amended the criteria for controlled transactions for transfer pricing purposes. Accordingly, the general transaction threshold for transactions to be considered controlled transactions will be raised from
See MoreArmenia approves BEPS MLI
On 24 March 2022, the Armenian Cabinet approved the ratification of BEPS MLI. Armenia signed the convention on 7 June 2017. After completing the ratification process Armenia must deposit its ratification instrument to bring the MLI into force for
See MoreRussia: FTS clarifies the application of transfer pricing control under sanctions
On 14 March 2022, the Federal Tax Service (FTS) published guidance (Letter No. ШЮ-4-13/2724) stipulating that the application of sanctions against Russian individuals and legal entities may adversely affect the economic conditions of the
See MoreRussia introduces tax exemption for IT sector
On 2 March 2022, the President of Russia signed Decree No. 83 (“the Edict”). The decree provides several tax incentives to support Russia's IT sector. Accordingly, qualified IT companies are granted an exemption from corporate income tax
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