- 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
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