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Tax risks of intragroup transactions may decrease

DATE: March 14, 2017 | AUTHOR: atlawyers

The Ministry of Finance  published a draft Ruling which clarifies the procedure of approval of transactions of major companies with foreign tax authorities. The procedure is intended to avoid disputes with foreign authorities raising due to different concepts of combating both tax base erosion and tax evasion. The right to execute relevant agreements on pricing may be provided to the companies whose assets or profits exceed 20 billion RUB, while the amount of paid taxes is at least 1 billion RUB per annum.

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