INCOME TAX	3 Months Ended
Mar. 31, 2013
INCOME TAX
INCOME TAX	8. INCOME TAX The Company is subject to US (domestic), Russian and Kazakh income taxes, based on US legislation, Russian tax legislation, Kazakh legislation and the Double Tax Treaty of 1992 between the US and Russia (the "Treaty"). The Company's Russian- and Kazakh-based subsidiaries are subject to Russian and Kazakh income tax. The statutory income tax rate in Russia and Kazakhstan in 2012 and the three months ended March 31, 2013 was 20%. US taxable income or losses recorded are reported on CTC Media, Inc.'s US income tax return. CTC Media, Inc.'s taxable revenues consist predominantly of dividends paid by its Russian subsidiaries and interest on deposits. Dividends distributed to CTC Media, Inc. are subject to Russian withholding tax of 5% under the Treaty. Dividends distributed within Russia are subject to a withholding tax of 9% in case of ownership of less than 50%. The Company's effective income tax rate was 34% and 36% for the three months ended March 31, 2012 and 2013, respectively. The increase in effective tax rate when comparing the three-month periods ended March 31, 2012 and 2013 was primarily due to recognition of certain foreign tax credits in the three months ended March 31, 2012 that were deducted from US income tax. The tax years ended December 31, 2010, 2011 and 2012 remain subject to examination by the Russian and US tax authorities. The tax years ended December 31, 2008 through 2012 remain subject to examination by the Kazakh tax authorities.

INCOME TAX

3 Months Ended

Mar. 31, 2013

8. INCOME TAX

The Company is subject to US (domestic), Russian and Kazakh income taxes, based on US legislation, Russian tax legislation, Kazakh legislation and the Double Tax Treaty of 1992 between the US and Russia (the "Treaty"). The Company's Russian- and Kazakh-based subsidiaries are subject to Russian and Kazakh income tax. The statutory income tax rate in Russia and Kazakhstan in 2012 and the three months ended March 31, 2013 was 20%. US taxable income or losses recorded are reported on CTC Media, Inc.'s US income tax return. CTC Media, Inc.'s taxable revenues consist predominantly of dividends paid by its Russian subsidiaries and interest on deposits. Dividends distributed to CTC Media, Inc. are subject to Russian withholding tax of 5% under the Treaty. Dividends distributed within Russia are subject to a withholding tax of 9% in case of ownership of less than 50%.

The Company's effective income tax rate was 34% and 36% for the three months ended March 31, 2012 and 2013, respectively. The increase in effective tax rate when comparing the three-month periods ended March 31, 2012 and 2013 was primarily due to recognition of certain foreign tax credits in the three months ended March 31, 2012 that were deducted from US income tax.

The tax years ended December 31, 2010, 2011 and 2012 remain subject to examination by the Russian and US tax authorities. The tax years ended December 31, 2008 through 2012 remain subject to examination by the Kazakh tax authorities.