The Ministry of Finance issued Letter 03-08-05, clarifying the tax treatment applicable to interest paid by a Russian legal entity to the National Treasury Office of Venezuela based on the Russia - Venezuela Income and Capital Tax Treaty (2003) (the Treaty). According to article 11 paragraph 2 of the Treaty, interest arising in Russia that is paid to a beneficial owner resident of Venezuela may be taxed in Russia, but the tax charged in Russia cannot exceed 5% if the interest is paid to banks, or 10% in all other cases. Furthermore, article 11 paragraph 3 provides that interest arising in Russia...