The Ministry of Finance and the State Tax Service have issued a joint letter which specifically deals with the taxation of the recently issued Eurobonds. The letter confirms that foreign legal entities trading Eurobonds offshore do not have a permanent establishment in Russia due to the mere fact of trading or performing of any services related to the trading. Purchase agreements can contain "tax clauses" which increase the amount to be paid out in case of new taxes which were not foreseen when the contract was concluded. Only when traded through a permanent establishment may turnover from the sale of Eurobonds give rise to road users tax. Housing tax can be levied on the same basis by the local tax authorities. It is also confirmed that interest income on Eurobonds is exempt for Russian profits tax and personal income tax purposes.
Letter of the Ministry of Finance and the State Tax Service of 18 November 1995 No. 1-35/105 and PV-6-08/795
For further information contact Bauke van der Meer on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Bauke_van_der_Meer@ru.coopers.com or enter a text search 'Coopers & Lybrand' and 'Business Monitor'
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Strategic planning is crucial to profitable business growth, but companies typically realise only about 63% of their business strategy's potential financial value because of defects and breakdowns in strategic planning and implementation.
One of the greatest challenges facing employers today is finding and keeping good employees. This article describes some effective employee retention strategies that will help you retain good staff and develop a stable workforce.
The quarterly CFO Survey is firmly established with media and policy makers as the authoritative barometer of UK corporates' sentiment and strategies.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).