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Russia Increases Key Interest Rate to 8.5% Impacting Controlled Debt Rules and Interest Penalties

|Approved Changes|Russia
Russia

The Russian Central Bank announced its decision to increase the key rate from 7.5% to 8.5% on 21 July 2023. 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 standard safe harbor rates range from 75% to 125% of the key rate. However, the upper range has been temporarily increased…

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