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Russia Issues Guidance on VAT Implications of the Transfer of Assets from a Parent to a Subsidiary

|Approved Changes|Russia
Russia

The Russian Ministry of Finance recently published Letter No. 03-07-03/47566, which clarifies the value added tax (VAT) implications of the transfer of assets from a parent company to a subsidiary as a contribution to capital. According to the letter, any VAT claimed as a deduction in relation to the transferred assets must be recovered (repaid to the government). The amount recovered is the am…

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