The Ministry of Finance published Letter No. 03-08-05/43186, issued on 16 October 2013, clarifying the corporate income tax treatment of the income received by a Dutch parent company further to the reduction of the share capital of its Russian subsidiary.
A Dutch company, the sole shareholder of a Russian company, decided to reduce the share capital of its subsidiary by decreasing the nominal share value. As a result of this decrease, the Dutch shareholder received income in the amount not excee…