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Russia Clarifies that LLC's Use of Retained Earnings to Increase Nominal Share Value Treated as Taxable Income for Shareholder

|Approved Changes|Russia
Russia

The Russian Ministry of Finance recently published Letter No. 03-03-06/1/30061, which provides guidance on the tax treatment of the use of retained earnings to increase the nominal share value for a shareholder in a limited liability company (LLC). According to the letter, under the Russian Tax Code a company's shareholder is not required to include in its tax base income received:

  • In the form…

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