Russia: Ministry of Finance to decide Pillar Two adjustments mid-2025
The Russian Ministry of Finance has announced that it will decide by mid-2025 whether to adjust national legislation in response to the global tax reform under Pillar Two. This announcement was made in a release on 11 December 2024. The
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Russia to tax cryptocurrency transactions starting 2025
Russia published Federal Law No. 418-FZ on 29 November 2024, which introduces amendments to the Tax Code concerning the taxation of income derived from cryptocurrency activities, including mining and trading. The law will take effect on 1 January
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Russia clarifies loss carry forward rules for IT companies
The Russian Ministry of Finance has released Guidance Letter No. 03-03-06/1/108990 on 25 November 2024, providing clarity on amendments to the loss restriction rules introduced by Federal Law No. 259-FZ. These changes affect IT companies that
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Russia, Abkhazia income tax treaty enters into force
The tax treaty between Abkhazia and Russia enters into force on 28 November 2024. This agreement will become effective for withholding and other taxes starting from 1 January 2025. It establishes a 10% withholding tax rate on dividends and
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Armenia approves FTA between EAEU, Iran
Armenia’s President has signed a law for the ratification of the free trade agreement (FTA) between the Eurasian Economic Union (EAEU) (Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia) and Iran on 27 November 2024. The Armenian National
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Russia increases tax deductions for software and database costs starting 2025
The Russian Ministry of Finance has issued Guidance Letter No. 03-03-06/1/96344 on 10 April 2024, clarifying updates to tax deductions for costs related to acquiring and using computer programs and databases. Currently, a 1.5x deduction applies
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Russia clarifies taxation of international shipping under 1997 treaty with Turkey
The Russian Ministry of Finance (MoF) issued Guidance Letter No. 03-08-09/96760 on 2 November 2024, clarifying the tax treatment of payments related to the operation of shipping vessels in international transport, in accordance with the 1997 tax
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Russia to tax cryptocurrency transactions
The Russian Ministry of Finance announced that the government has approved proposed amendments to a bill regarding the taxation of income and expenses related to cryptocurrency transactions and mining. A report by the Russian news agency Interfax
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Russia ratifies income tax treaty with Abkhazia, Malaysia
The President of Russia signed the Law No. 372-FZ for the ratification of the income tax treaties with Abkhazia and Malaysia on 2 November 2024. Earlier, the Russian government approved draft laws for the ratification of pending income tax
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France clarifies tax treaty suspension with Russia
The French General Directorate of Public Finances published a guidance, on 23 October 2024, for the application of the France and Russia income tax treaty following the suspension of several provisions of the agreement. Despite the suspension,
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Russia: Upper House approves tax treaty with Abkhazia
The Russian Federation Council, upper house of parliament, approved the law for the ratification of the pending income tax treaties with Abkhazia on 23 October 2024. The treaty with Abkhazia, signed on 7 May 2024, is the first between the two
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Russia: Central Bank raises record high key interest rate
The Central Bank of Russia (CBR) has increased the key interest rate from 19% to 21%, on Friday, 25 October 2024. The initiative is an effort to combat growing inflation as government spending on military strains the economy’s capacity to
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Sweden moves to suspend income tax treaty with Russia
The Swedish government has presented a bill, the Repeal Act, to the Parliament with the intention to annul Act (1993:1301) concerning the Income and Capital Tax Treaty between Russia and Sweden on 24 October 2024. Earlier, Russia suspended
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Russia: Lower house of parliament approves ratification of tax treaty with Malaysia
The Russian State Duma (lower house of parliament) approved the draft law for the ratification of the income tax treaty with Malaysia on 22 October 2024. Earlier, the two nations signed a new income tax treaty on 17 May 2024. This agreement
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Lithuania terminates tax treaty with Russia
Lithuania has terminated its tax treaty with Russia on 11 October 2024, published Law No. XIV-2991 in the Official Gazette. Lithuania's Ministry of Foreign Affairs stated that the treaty will expire on 1 January 2026. Earlier, Lithuania’s
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Russia clarifies transfer pricing rules for foreign entities with permanent establishments
Russia’s Ministry of Finance (MOF) has issued a guidance letter No. 03-12-12/1/59174 clarifying the transfer pricing obligations for controlled transactions involving foreign legal entities operating through permanent establishments (PEs) in
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Russia to increase corporate income tax rate on interest from government securities
The Russian government has decided to raise the corporate income tax rate on interest earned from government and municipal securities by 5%. The proposed amendments are included in bill No. 727330-8, which has been submitted to the State Duma on
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Russia proposes tax on excess bank profits
Russia is set to introduce a new one-time tax on banks' excess profits following a surge in financial sector earnings. The bill (No. 728613-8) is to be presented to the State Duma on 1 October 2024 by Budget Committee deputy chairman Aleksandr
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