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Insurance Costs Deductable

18.10.2009

The Association of European Businesses has announced that the Russian Ministry of Finance has replied a AEB Tax Committee query clarifying that, based on the “Protocol to the Double Tax Treaty” signed between Russia and France, any expenses carried out by the above legal entities, while running a commercial activity in Russia are tax deductible, provided they are justified, incurred in relation to income-generating activity and properly documented.

This means that insurance expenses are fully deductable if they are related to the commercial activities of Russian legal entities - subsidiaries of French companies or permanent establishments of French companies in Russia.




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