Russia updates non cooperative Jurisdictions list for CFC purpose
On 5 December 2022, the Federal Tax Service of Russia published Order No. ED-7-17/987 in the Official Gazette which provides an update list of jurisdictions that do not have acceptable tax information exchange with Russia. The list applies in
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Russia: CBR cuts interest rate again
On 16 September 2022, the Central Bank of Russia (CBR) adopted a decision to cut the key interest rate from 8.0% to 7.5%. The key interest rate is used for the purposes of calculating interest deductions and late payment interest on overdue
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Russia proposes to raise tax evasion thresholds
On 18 August 2022, the government launched a consultation on a proposal to raise the thresholds for tax evasion by legal entities. Accordingly, the criminal liability thresholds are amended as follows: The proposed threshold for large-scale tax
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Russia updates the list of foreign states for automatic exchange of CbC reports
Recently, the Federal Tax Service of Russia published (Order No. ED-7-17/449) a new list of foreign states (territories), with which Russia will automatically exchange Country-by-Country (CbC) reports. Accordingly, the following states are
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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 MoreBRICS Summit Declaration Notes Progress on Tax and Customs Cooperation
Following the virtual BRICS summit held on 23 June 2022, the Beijing Declaration emphasised the need to cooperate to promote economic recovery. The BRICS group of emerging powers – Brazil, Russia, India, China and South Africa – has
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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 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 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 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
See MoreRussia increases the interest rates to 20%
On 28 February 2022, the Russian Central Bank has announced the decision to increase the key rate from 9.50% to 20%. The measure was taken in response to the Russian invasion of Ukraine, followed by harsh sanctions and the collapse of the
See MoreRussia increases the interest rate from February 2022
On 14 February 2022, the Russian Central Bank has announced the decision to increase the key rate from 8.50% to 9.50% with effect from 14 February 2022. The CBR’s key interest rate is used for the purposes of calculating interest deduction and
See MoreRussia increases the interest rate from December 2021
On 17 December 2021, the Russian Central Bank has announced the decision to increase the key rate from 5% to 8.5% with effect from 20 December 2021. The new rate applies from The CBR's key interest rate is used for the purposes of calculating
See MoreRussia proposes a 0% CIT Rate to specific sectors
On 25 November 2021, the Ministry of Finance (MoF) submitted Bill No. 25126-8 to Parliament. The law provides for a corporate tax rate of 0% for cultural institutions established by municipalities. If accepted, the 0% rate will apply from January
See MoreRussia: MOF publish clarification guidance for TP purposes
On 18 November 2021, the Russian Ministry of Finance (MoF) published a Guidance Letter No. 03-03-07/85525 clarifying that a loan is considered a controlled debt for Transfer Pricing (TP) purposes if it is granted to a Russian company by a third
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