Russia's Federal Tax Service (FTS) recently issued Letter no. SHU-4-13/5078@ concerning the forgiveness of debt obligations by a foreign creditor in 2022. The letter notes that debt forgiveness is generally recognized as non-operating income of a Russian debtor and taken into account when determining the tax base for corporate income tax. However, amounts forgiven in 2022 under a loan (credit) agreement concluded before 1 March 2022 with a foreign organization or a claim assigned to a foreign organization before 1 March 2022 are not included as income in the tax base of a Russian organization. It is also clarified that the income of a foreign organization from sources in Russia does not arise when the debt of a Russian debtor is forgiven since the termination of the obligation through the forgiveness of the debt does not lead to the emergence of a benefit for the creditor.