INCOME TAX	9 Months Ended
Sep. 30, 2014
INCOME TAX
INCOME TAX	8. INCOME TAX The Company is subject to US, 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 (1) less than 50% in a Russian distributing subsidiary or (2) more than 50% in a Russian distributing subsidiary for less than 365 days. The statutory income tax rate in Russia and Kazakhstan in 2013 and for the nine months ended September 30, 2014 was 20%. In the three- and nine-month periods ended September 30, 2013, the Company's effective tax rate was impacted by the recognition in the third quarter of 2013 of tax benefits that the Company determined were available for offset against US taxes based on a comprehensive examination of certain positions taken in its 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". Net of this effect, its effective tax rate for the three- and nine-month periods ended September 30, 2013 would have been 30% and 34%, respectively. In the three- and nine-month periods ended September 30, 2014, the Company's effective tax rate was approximately 31%. 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, 2010 through 2013 remain subject to examination by the Kazakh tax authorities. The Company's Board of Directors and shareholders may pursue a restructuring of the Company's group to comply with the restrictions on non-Russian ownership of mass media entities under the Russian law On Mass Media (see Note 9, Commitments and Contingencies—Amendment to Mass Media law), that may result in the group being required to pay significant US taxes.

8. INCOME TAX

The Company is subject to US, 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 (1) less than 50% in a Russian distributing subsidiary or (2) more than 50% in a Russian distributing subsidiary for less than 365 days. The statutory income tax rate in Russia and Kazakhstan in 2013 and for the nine months ended September 30, 2014 was 20%.

In the three- and nine-month periods ended September 30, 2013, the Company's effective tax rate was impacted by the recognition in the third quarter of 2013 of tax benefits that the Company determined were available for offset against US taxes based on a comprehensive examination of certain positions taken in its 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". Net of this effect, its effective tax rate for the three- and nine-month periods ended September 30, 2013 would have been 30% and 34%, respectively. In the three- and nine-month periods ended September 30, 2014, the Company's effective tax rate was approximately 31%.

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, 2010 through 2013 remain subject to examination by the Kazakh tax authorities.

The Company's Board of Directors and shareholders may pursue a restructuring of the Company's group to comply with the restrictions on non-Russian ownership of mass media entities under the Russian law On Mass Media (see Note 9, Commitments and Contingencies—Amendment to Mass Media law), that may result in the group being required to pay significant US taxes.