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Russia Increases Key Interest Rate to 20% Impacting Controlled Debt Rules and Interest Penalties

|Approved Changes|Russia
Russia

The Russian Central Bank has announced its decision to increase the key rate from 9.50% to 20.0% on 28 February 2022.

For tax purposes, the key rate is important in relation to the safe harbor rates for interest income and expense on controlled debt. For ruble-denominated loans, the safe harbor rates range from 75% to 125% of the key rate. For loans denominated in other currencies, the safe …

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