News

Russia - Ministry of Finance clarifies the tax treatment of assets received free of charge from independent parties

June 8, 2017

On 8 November 2012, the Ministry of Finance issued a letter No. 03-01-18/8-162 clarifying the tax treatment applicable to assets (works, services, or property rights) received free of charge in transactions between independent parties.
The Ministry of Finance clarified that assets received free of charge from an independent entity should be reported by the beneficiary at a value not lower than the residual value for depreciable assets and not lower than the costs for their acquisition/production.
In addition, the Ministry of Finance emphasized that if taxpayers artificially create conditions for qualifying those transactions as not being controlled, or abuse the prices in a way that results in an unjustified tax benefit, the tax authorities may conclude that the parties are actually related and treat the transaction as controlled for transfer pricing purposes.

IBFD source

Because life is complicated enough. 

Our Offices

London

info@laggan-uk.com
+44 (0)20 7631 2061
Laggan & Associates Ltd
5th floor, North Side
7/10 Chandos Street
Cavendish Square
London W1G 9DQ

Republic of Ireland

office@laggan-ie.com
+353-1-2100440
21 Priory Office Park
Stillorgan
CO Dublin – Republic of Ireland

Get in touch

Contact Form
Email: info@laggan-uk.com

Phone: 0044 (0)20 7631 2061

Address: 5th floor, North Side 7/10 Chandos Street Cavendish Square London W1G 9DQ
Copyright 2021 Designed by LTDO - Laggan & Associates Limited - Terms & Conditions - Privacy Statement