INCOME TAX	3 Months Ended
Mar. 31, 2014
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 United States and Russia ("Treaty"). 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 owned-and-operated affiliate stations and networks and interest on deposits. Dividends distributed to CTC Media, Inc. are subject to a Russian withholding tax of 5% under the Treaty. Dividends distributed within Russia are subject to a withholding tax of 9% for Russian companies holding less than 50% in a Russian distributing subsidiary for more than 365 days. The statutory income tax rate in Russia and Kazakhstan in 2013 and the three months ended March 31, 2014 was 20%. The Company's effective income tax rate was 36% and 31% for the three months ended March 31, 2013 and 2014, respectively. The decrease in effective tax rate when comparing the three-month periods ended March 31, 2013 and 2014 was primarily due to the recognition of foreign tax benefits that we determined were available for offset against US taxes based on a comprehensive examination of certain positions taken in the Company's historical US income tax filings. See the Annual Report on Form 10-K filed with the SEC on March 6, 2014—"Item 8. Financial Statements and Supplementary Data—Note 13, Income taxes". The tax years ended December 31, 2011, 2012 and 2013 remain subject to examination by the Russian and US tax authorities. The tax years ended December 31, 2009 through 2013 remain subject to examination by the Kazakh tax authorities.

INCOME TAX

3 Months Ended

Mar. 31, 2014

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 United States and Russia ("Treaty"). 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 owned-and-operated affiliate stations and networks and interest on deposits. Dividends distributed to CTC Media, Inc. are subject to a Russian withholding tax of 5% under the Treaty. Dividends distributed within Russia are subject to a withholding tax of 9% for Russian companies holding less than 50% in a Russian distributing subsidiary for more than 365 days. The statutory income tax rate in Russia and Kazakhstan in 2013 and the three months ended March 31, 2014 was 20%.

The Company's effective income tax rate was 36% and 31% for the three months ended March 31, 2013 and 2014, respectively. The decrease in effective tax rate when comparing the three-month periods ended March 31, 2013 and 2014 was primarily due to the recognition of foreign tax benefits that we determined were available for offset against US taxes based on a comprehensive examination of certain positions taken in the Company's historical US income tax filings. See the Annual Report on Form 10-K filed with the SEC on March 6, 2014—"Item 8. Financial Statements and Supplementary Data—Note 13, Income taxes".

The tax years ended December 31, 2011, 2012 and 2013 remain subject to examination by the Russian and US tax authorities. The tax years ended December 31, 2009 through 2013 remain subject to examination by the Kazakh tax authorities.