- Russia’s Ministry of Finance clarified in guidance letter No. 03-07-11/121626 that dividends paid in the form of property are considered taxable income for corporate income tax purposes, as the transfer of ownership is recognized as a sale.
- When a company pays dividends in property, the value of the transferred assets can be deducted from the taxable income, effectively reducing the tax base for corporate income tax calculations.
- The ownership transfer of property as dividends is also subject to VAT, meaning that both corporate income tax and VAT implications arise from such transactions.
Source Orbitax
Latest Posts in "Russia"
- Russian Finance Ministry Suggests VAT on Online Platform Purchases
- Russia’s VAT Hike to Fund Defense Spending Expected to Increase Inflation by 1% Next Year
- Russia’s SPOT System Boosts VAT Revenue Growth in Federal Budget for Second Year
- Russian Finance Ministry Proposes VAT on Foreign Marketplace Purchases Starting 2027
- Russian Finance Ministry Proposes VAT on Foreign Goods from Marketplaces, Gradual Rate Increase Planned
