In addition to the deductions/credits listed above, deductions and business expenses may be claimed as specified below:

• Offset of losses - A loss may be offset forward for up to 10 years. There is no carryback of losses.
• Consolidated statements – it is possible in Russia to file consolidated returns and offset a loss in one company in a group against the profit of another company in the group when the ownership in the group is 90% and more, subject to certain terms
• Financing costs -interest on suppliers' credit is allowable subject to certain limits.
• There are "thin capitalisation" rules for debts to foreign companies, or their affiliated Russian companies, holding more than 20% of a Russian company.
  The maximum debt to equity ratio allowed is 3:1. For banks the ratio is 12.5:1.
• Advertising Costs - These are allowable only as a percentage of the volume of income.
• Entertaining Expenses - Allowable only as a percentage of the employees' salaries.
• Bad Debts - Bad debts are generally tax deductible.

Depreciation of Fixed Assets in Russia

• The depreciated balance method or the straight line method are the usual methods of depreciation in Russia.
• Assets for purposes of depreciation are divided into 10 groups.
• Intangible assets are depreciated according to the useful life of the asset.
  If it is not possible to estimate the useful life of the asset, the depreciation is 10% per annum.
• From 01.01.2009 there is an additional 30% deduction for purchase of certain new fixed assets.