Russia Issues Guidance on the Treatment of Bad Debts Owed by Non-Residents

The Russian Ministry of Finance recently issued guidance on the rules regarding the tax treatment of bad debts owed by non-residents. According to the guidance, debts may generally be recognized as uncollectable in cases where:

• The term of repayment of the debt has expired;
• The debt obligation has been terminated due to the impossibility of its fulfillment on the basis of an act issued by a state authority or as a result of the liquidation of the debtor;
• It is impossible to ascertain the loc…