New amendments to the Russian Tax Code affected foreign affiliated parties by Federal Law dated November 27, 2023, N 539-FZ

If#nbsp;the price applied in#nbsp;a#nbsp;transaction between related parties differs from the market price and one of#nbsp;the parties is#nbsp;not a#nbsp;tax resident of#nbsp;the Russian Federation, such difference becomes the basis for adjusting the tax base for taxes. The income from a#nbsp;non-tax resident of#nbsp;Russia, in#nbsp;the amount of#nbsp;the corresponding adjustment, is#nbsp;equal to#nbsp;dividends received by#nbsp;this non-tax resident from sources in#nbsp;the Russian Federation and is#nbsp;taxed by#nbsp;Russian legislation.

The date of#nbsp;receipt of#nbsp;such income is#nbsp;recognized as#nbsp;the last day of#nbsp;the calendar year in#nbsp;which the transaction between related parties was completed.

If#nbsp;a#nbsp;foreign company returns the price difference to#nbsp;Russian company to#nbsp;the bank account no#nbsp;later than the deadline for paying the corresponding tax for the tax period in#nbsp;which the transaction between related parties was made, then this difference will not be#nbsp;equated to#nbsp;dividends.