16.01.09

Property received without compensation by a Russian company from a foreign parent company is not counted towards a company's profit tax base.

This position is expressed in letter of the Ministry of Finance (MinFin) # 03-03-06/1/669 from December 5, 2008. As grounds for this ruling, MinFin referred to Paragraph 1 of Article 251 of the Tax Code, explaining that Chapter 25 of the Tax Code provides no regulations regarding receiving property without compensation from a parent organization, including cases when received from a foreign company.

Read More about Accounting Services from Alinga Consulting Group