The Russian Ministry of Finance has published Letter No. SD-4-3/16391 of 28 August 2018 concerning the tax treatment of contractual fines, penalties, etc. awarded by a decision of a foreign court.
The letter notes that under the Russian Tax Code, non-operating income includes contractual fines, penalties, and/or other sanctions to be paid by a debtor on the basis of a court decision concerning the violation of contractual obligations, as well as compensation for losses or damages. For this …