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Russia Clarifies the Tax Treatment of Income Resulting from a Reduction in Capital of a Subsidiary

|Approved Changes|Russia
Russia

The Russian Ministry of Finance recently published Letter No. 03-03-06/1/40557 of 14 June 2018, which clarifies the tax treatment of income received by a Russian parent as a result of a reduction in the authorized capital of a subsidiary. The letter notes that under Article 251 of the Tax Code, taxable income does not include assets or property rights received in proportion to the value of cont…

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