Taxes Withheld Erroneously Are Retrievable

In its Letter #03-03-06/1/464 dated 07.16.2010, the Ministry of Finance addresses the issue of refunding profit tax withheld and paid by a tax agent from a foreign company’s income when this income is exempt from taxation according to Russian legislation.

In such a situation, the tax agent is obligated to submit an adjusted calculation to their local tax authorities. After this is done, the tax agent then has the right to appeal to these same tax authorities for a refund of the excess taxes.

In this case, the foreign organization may request back the amount of taxes that the tax agent wrongfully withheld.