OrbitaxOrbitax

Russia Reduces Key Interest Rate to 17% Impacting Controlled Debt Rules and Interest Penalties

|Approved Changes|Russia
Russia

The Russian Central Bank has announced its decision to reduce the key rate from 20.0% to 17.0% with effect from 11 April 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 standard safe harbor rates range from 75% to 125% of the key rate. However, the upper range was tempor…

Continue Reading