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Russia Clarifies Deductibility of Contractual Fines and Penalties

|Approved Changes|Russia
Russia

The Russian Ministry of Finance recently published Letter No. 03-03-06/2/15657, which clarifies the deductibility of fines, penalties and other sanctions resulting from a failure to meet contractual or debt obligations. According to the letter, Russia's Tax Code provides for the deduction of such payments as required by a court decision for noncompliance, including any payment for compensation …

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