INCOME TAX	3 Months Ended
Mar. 31, 2015
INCOME TAX
INCOME TAX	8. INCOME TAX The Company is subject to U.S. (domestic), Russian and Kazakh income taxes, based on U.S. legislation, Russian tax legislation, Kazakh legislation and the Double Tax Treaty of 1992 between the United States and Russia ("Treaty"). U.S. taxable income or losses recorded are reported on CTC Media, Inc.'s U.S. 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 0% for Russian companies holding (1) more than 50% in a Russian distributing subsidiary or (2) less than 50% in a Russian distributing subsidiary for more than 365 days. The statutory income tax rate in Russia and Kazakhstan in 2014 and the three months ended March 31, 2015 was 20%. The Company's effective income tax rate was 31% and (15)% for the three months ended March 31, 2014 and 2015, respectively. The decrease in effective income tax rate was due to one-off income tax refund confirmed and reclaimed from Russian tax authorities based on the Company's interpretation of certain positions taken in the historical income tax filings. Excluding this effect, our effective tax rate would have been 31% and 28% for the three months ended March 31, 2014 and 2015, respectively. The tax years ended December 31, 2012, 2013 and 2014 remain subject to examination by the Russian and U.S. tax authorities. The tax years ended December 31, 2011 through 2014 remain subject to examination by the Kazakh tax authorities.

INCOME TAX

3 Months Ended

Mar. 31, 2015

8. INCOME TAX

The Company is subject to U.S. (domestic), Russian and Kazakh income taxes, based on U.S. legislation, Russian tax legislation, Kazakh legislation and the Double Tax Treaty of 1992 between the United States and Russia ("Treaty"). U.S. taxable income or losses recorded are reported on CTC Media, Inc.'s U.S. 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 0% for Russian companies holding (1) more than 50% in a Russian distributing subsidiary or (2) less than 50% in a Russian distributing subsidiary for more than 365 days. The statutory income tax rate in Russia and Kazakhstan in 2014 and the three months ended March 31, 2015 was 20%.

The Company's effective income tax rate was 31% and (15)% for the three months ended March 31, 2014 and 2015, respectively. The decrease in effective income tax rate was due to one-off income tax refund confirmed and reclaimed from Russian tax authorities based on the Company's interpretation of certain positions taken in the historical income tax filings. Excluding this effect, our effective tax rate would have been 31% and 28% for the three months ended March 31, 2014 and 2015, respectively.

The tax years ended December 31, 2012, 2013 and 2014 remain subject to examination by the Russian and U.S. tax authorities. The tax years ended December 31, 2011 through 2014 remain subject to examination by the Kazakh tax authorities.