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Payments Into Overseas Retirement Funds Not Classifiable As Expenditures


Russia’s Ministry of Finance, issued an opinion on foreign organizations with branches in Russia that pay into their employees’ voluntary, private retirement funds based abroad. These expenditures may not be deducted from the profit tax base, Article 255 of the Tax Code specifies that such deductions can be made only if the private pension fund is licensed by the Russian Federation.

This is according to Letter #03-03-06/1/543 from 08-24-2009.

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