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The Tax Department recently revised reference rates used to calculate the notional interest deduction under Article 9B of the Income Tax Law for new capital used to finance assets employed in Russia.
The Tax Department recently revised reference rates used to
calculate the notional interest deduction under Article 9B of the
Income Tax Law for new capital used to finance assets employed in
Russia.
The reference rate for Russian government 10-year bonds at
December 31 2014 – which is used to calculate the notional
interest deduction for capital introduced in 2015 – had been
set at 13.73%. The corresponding rate at December 31 2015, which is
used to calculate the notional interest deduction for capital
introduced in 2016, had been set at 9.57%.
In a revised announcement published on the Tax Department's
website on July 9 2016, these rates were reduced to 6.58% and
6.60%, respectively.
Consequently, applying the prescribed uplift of three percentage
points, the notional interest deduction for new capital introduced
in 2015 to finance assets employed in Russia will be calculated at
a rate of 9.58%. For capital introduced in 2016, the notional
interest deduction will be calculated at a rate of 9.6%.
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