How to determine revenue for companies with foreign participation: explanations of the Ministry of Finance of the Russian Federation

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Due to the fact that since the middle of last year, particular provisions of international treaties of the Russian Federation on taxation have been suspended, the authorities have provided clarifications on the issue of accounting for advertising expenses for profit taxation purposes.

Thus, legal entities that undertake to pay quarterly advance payments on income tax were ordered to determine revenue from July 1, 2023, and those legal entities that are required to pay monthly advance payments – from August 1, 2023.

However, the ministry came to different conclusion later – for the reason that when determining the tax base, the profit that is subject to taxation shall be determined on an accrual basis from the beginning of the tax period, and a calendar year is recognized as a tax period, then for the profit taxation purposes legal entities shall determine revenue in accordance with the Tax Code of the Russian Federation.