Advice on a sponsorship agreement
Largest international automotive manufacturer
Project Objectives
  • Attracting financing in Russia from a foreign parent company for the conclusion of a $100 million sponsorship agreement (sports event)
  • Tax structuring of the transaction, agreement on wording to eliminate tax risks (requalification as charity)
  • Agreement on wording for VAT (property’s transfer)
Results
  • Financing structure for the sponsorship agreement was developed (loans and contributions to property)
  • Wording of the contract was approved to obtain a VAT benefit (approximately $10 million) upon property transfer
  • Wording of the contract was approved to obtain a corporate tax deduction (approximately $20 million)
  • Contract signed and executed
Services
121596, Russia, Moscow, Business center "Grand Setun Plaza", st. Gorbunova 2, building 3, office 12/8
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