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Using Foreign Taxes As Tax Deductions In Russia
Taxes paid by a Russian organization to a foreign government can be used as tax deductions in Russia if the income from which the tax was withheld is also included in the organization's tax base in Russia. The company must also show that the taxes were paid to a foreign government.
This was clarified by the Ministry of Finance of the Russian Federation in its Letter of 28.04.2017 No. 03-03-06 / 1/26257.
The above is consistent with the norms of Article 311 of the Tax Code, which states that the tax authorities are required to consider sums of income tax paid by Russian organizations in accordance with the legislation of foreign countries, while not allowing for tax credits on Russian taxes in amounts greater than that payable by the Russian organization in Russia.
Translated by Alinga Consulting Group.
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