The Russian Ministry of Finance recently published guidance letter 03-08-13/62064 regarding the taxation of interest income paid by a Russian permanent establishment (PE) of a foreign company in favor of another foreign company, without a PE in Russia, that provided loans to the PE for the purpose of carrying out activities in Russia. The letter provides that in accordance with the current provisions of the Tax Code, interest payments in such cases are not subject to tax (withholding). However, the letter also notes that in accordance with amendments to the Tax Code introduced Federal Law No. 305-FZ of 2 July 2021, the scope of income of a foreign company subject to withholding includes interest income on debt obligations of foreign organizations operating in Russia through a PE, provided that the debt on which the interest is paid arose in connection with the activities of the PE. This amendment applies from 1 January 2022.