Russia Clarifies Income from Reduction in Additional Paid-In Capital Not Taxable under Tax Treaty with Cyprus
The Russian Ministry of Finance recently published Letter No. 03-08-05/6035 concerning the taxation of income paid by a Russian entity to its sole Cyprus shareholder in connection with the reduction of the entity's additional paid-in capital formed from the shareholder's investment. The letter clarifies that under the Russian Tax Code, income paid to a sole shareholder due to a reduction of add…
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