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Taxation of the interest income distributable to “unfriendly” individuals

DATE: August 18, 2023 | AUTHOR: AT

According to the press release of the Ministry of Finance of the Russian Federation of 11 August 2023, this Autum amendments to the Russian Tax Code are planned to be introduced. The amendments under consideration shall allow Russian taxpayers not to withhold corporate income tax (or to withhold it at a reduced rate) upon distributing interest income to the legal entities associated with unfriendly states, namely to the export credit agencies and banks, if the similar provision was stipulated by the relevant clause of the DTT which has been suspended by Presidential Decree No. 585 of 08.08.2023. Such amendments shall be applicable as of the 08.08.2023.

We will monitor developments and keep you informed should any additional support measures be put in place to mitigate the impact of the suspension of relevant DTTs.



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