Eurobond holders in Russia could be permitted to defer remitting tax on frozen payments - bill

MOSCOW. June 3 (Interfax) - The Russian government has submitted a bill to the State Duma that would permit Russian legal entities that hold Eurobonds to defer, until the beginning of 2024, accounting for income in the tax base of payments that has not been received owing to the foreign sanctions, and the corresponding document no. 136059-8 is posted in the State Duma's electronic database.

Current legislation requires companies to reflect their income in the tax period in which the income is formally received regardless of the actual receipt of funds. The government has also proposed to establish that the date of receipt of non-operating income from the repayment of Eurobonds and in the form of interest should be the date of receipt of funds, though by at least December 31, 2023.

The government expects the amendments to ease the fiscal burden on Russian companies that are not able to receive payments on Eurobonds owing to foreign settlement organizations' blocking of payments to Russian companies.