Thursday, September 21, 2023

Putin orders partial suspension of tax agreements with unfriendly countries

The Russian President, Vladimir Putinordered today to partially suspend the tax agreements signed with unfriendly countries, which include, among others, United States and members of the European Union (EU).

The decree responds to the need to adopt “urgent measures” due to “unfriendly actions” from certain countries, according to the Russian legal information portal.

The suspension of several points of said agreements will be in force until those countries do not eliminate the sanctions against the interests of the Russian state, its citizens and legal entities.

The measure will affect the reduced tax rates on interest and dividendsbut not double taxation in relation to natural persons, that is, Russians who pay taxes in the West or foreigners who are listed in Russia.

The Government must submit a bill in this regard to the Duma or Chamber of Deputies and the Ministry of Foreign Affairs inform the authorities of the affected countries about the Kremlin’s decision.

The agreements include the agreement of double taxation and prevention of tax evasion with the US of 1992 and similar documents with the UK (1994), Canada and Switzerland (1995).

The validity of tax agreements with Germany, France, Spain, Italy, Denmark, the Czech Republic and Finlandamong other countries.

Last February Putin denounced the double taxation agreement with Latvia and Denmark did the same with Russia last month.


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