LETTER OF THE MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION

of August 16, 2013 No. 03-01-18/33535

About application of provisions of the Section V.1 of the Tax code by banks

In connection with the arriving addresses concerning application of provisions of the Section V.1 of the Tax Code of the Russian Federation by banks (further - the Code) the Ministry of Finance of the Russian Federation according to Item 1 of article 34.2 of the Code reports the following.

The Section V.1 of the Code establishes rules of determination of the prices for the purposes of the taxation in connection with transactions between affiliated persons who provide, first of all, application in case of determination of income (expenses) gained as a result of transactions between affiliated persons, the commonly accepted principle of "outstretched arm" in world practice (Item 1 of article 105.3 of the Code).

At the same time the rules provided by the Section V.1 of the Code extend, in particular, to transactions which implementation attracts need of accounting at least with one party of such transactions of the income, expenses that leads to increase and (or) reduction of tax base on taxes, stipulated in Item 4 articles 105.3 of the Code.

Please note that according to Item 1 of article 105.3 of the Code accounting of the income (profit, revenue) for the purposes of the taxation is made if it does not lead to reduction of tax amount, subject to payment in budget system of the Russian Federation (except as specified when the taxpayer applies symmetric adjustment according to the Code).

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