15 Mar 2023 13:57

Russia could suspend tax agreements with all 'unfriendly' countries

MOSCOW. March 15 (Interfax) - Russia could suspend the agreements on avoiding double taxation with all "unfriendly" countries in one fell swoop by issuing a special presidential decree, and the Finance Ministry and the Foreign Affairs Ministry have presented the corresponding initiative, the financial department said on Wednesday.

"Western countries have been implementing unilateral economic restrictive measures since 2022 in regards to Russia, including the European Union this past February having included Russia in the list of non-cooperative tax jurisdictions, the so-called 'EU black list'. Implementing restrictive measures unilaterally violates the rules. Accordingly, Russia has grounds to implement retaliatory measures. In this regard, the Finance Ministry and the Foreign Affairs Ministry of Russia have proposed to the President of the Russian Federation to issue a decree on suspending the agreements on avoiding double taxation with all of the countries that have implemented unilateral economic restrictive measures against Russia," according to the statement.

The respective ministries propose suspending the said agreements "until Russia's rights currently being violated have been reinstated".

If the government supports the proposal from the Finance Ministry and the Foreign Affairs Ministry, then application of reduced withholding tax rates (tax exemptions) regarding income covered by double taxation agreements would be suspended as of the moment that the decree has been issued.