Russian non-profit organizations do not have to pay profit tax on donations from abroad
The St. Petersburg and Leningrad Region Arbitration Court has overruled the tax service’s decision to collect profit tax on foreign donations from a non-profit organization. Russian tax authorities charged the Strategy humanitarian and political science center in St. Petersburg 4.5 million rubles ($152,000) in supplementary profit tax. The center contested the decision in court. Its statement of claim reads that the tax authority sought profit tax on donations granted by foreign entities not included in a special government list. The Supreme Arbitration Court ruled that Russian non-profit entities are not obliged to pay profit tax on donations from abroad. The St. Petersburg and Leningrad Region Commercial Court referred to this decision to overrule the unlawful profit tax collection.
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