(Tax News Reporter - Week Ended 25 June 1996)
Income received by foreign legal entities from Russian companies is subject to income withholding tax unless the Russian party is provided either with a "notification on the sources of income in Russia" or a withholding tax exemption form approved by the appropriate foreign and Russian tax authorities. Both of the forms are Appendixes to Instruction No 34 "On taxation of profits and income of foreign legal entities" as amended. Moscow State Tax Inspectorate also suggests that this process be used for exemption from VAT withholding requirements.
Letter of the Moscow State Tax Inspectorate of 5 June 1996 No. 11-13/11769
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