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Russia Key Interest Rate Increased to 4.5%; 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 4.25% to 4.50%. The increase is effective from 19 March 2021.

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 ot…

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