Department of tax and custom-tariff policy of the Russian Federation Ministry of Finance has clarified certain details of taxation of personal income received by a natural person as a result of mandatory buyout of shares in his ownership in its Letter dated 1 November 2012 N 03-04-05/3-1247 “On taxation of personal income received as a result of shares buyout” (hereinafter – the “Letter”). The Letter is not a normative act and is not binding, representing a clarification of Ministry of Finance on application of legislation rules.
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