NewsRescue
Russian President Vladimir Putin issued a proclamation on Tuesday suspending certain parts of tax treaties with the United States, many EU members, and other ‘unfriendly states’. Russia’s finance and foreign ministries advocated scrapping double-taxation contracts with nations who sanctioned Moscow.
According to a document published on Russia’s official legal information page, the decision was “based on the need to take urgent measures” in response to ‘unfriendly actions’ by some countries. The restriction on double taxation will continue in effect “until foreign states eliminate the violations they have committed of the Russian Federation’s legitimate economic and other interests, as well as the rights of its citizens and legal entities,” or until the relevant documents cease to exist.
Simultaneously, the administration was directed to take steps to mitigate the impact of the suspension of tax treaties on the Russian economy. The Cabinet of Ministers is now obligated to present a bill to the State Duma regarding the suspension of such documents, and the Russian Foreign Ministry is also required to notify the relevant foreign states of the decision.
The decision, in particular, suspends agreements between Russia and the United States on the avoidance of double taxation and the prevention of income and capital tax evasion. Moscow has suspended double taxation treaties with 38 nations, including the United Kingdom, Canada, Switzerland, Japan, the Czech Republic, Denmark, Norway, Italy, Finland, France, and Germany.
