05 March 2018 Russian Finance Ministry communications clarify imposition of withholding tax on international transportation services Recently, there has been an increase in questions raised by taxpayers about withholding tax on services rendered by foreign companies in connection with the transportation of goods. Recent explanations issued by Russia's Finance Ministry and developments in arbitration case law in this area address the issues faced by many companies that pay for the services of foreign carriers. As a general rule, when a foreign company receives income from Russia regarding international transportation services, that income is subject to withholding tax. Tax must be withheld at the rate of 10% unless more favorable treatment is provided in a tax treaty. Document ID: 2018-0488 |
