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Russia Clarifies Conditions for Foreign Tax Credit

|Approved Changes|Russia
Russia

The Russian Ministry of Finance has issued Letter No. 03-12-11/1/26759 on the conditions for a credit for foreign tax paid on foreign source income. The letter clarifies that in order for a foreign tax credit to apply, two main conditions must be met:

  1. The taxpayer has included the foreign source income in its tax base for Russian corporate tax purposes; and
  2. The corporate tax was in fact paid …

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