Russian President Vladimir Putin this Tuesday ordered a partial suspension of tax deals with so-called hostile countries, a Moscow-assigned designation that includes the United States and members of the European Union (EU).
The decree in question is in response to the need to take “urgent measures” due to “hostile actions” by certain countries, according to the official Russian legal information portal.
The suspension of several points of the tax treaties will be in effect until the so-called hostile countries lift sanctions against the national interests of the Russian state, its citizens and legal entities, the document, quoted by international agencies, said.
The measure affects reduced tax rates on interest and dividends, but not double taxation of natural persons, ie Russians who pay taxes in the West or foreigners who do so in Russia.
The government will have to submit a bill on this to the Duma (lower house of the Russian parliament) and the Russian Ministry of Foreign Affairs will have to inform the authorities of the countries concerned about this decision by the Kremlin.
According to the Spanish news agency EFE, among the agreements targeted by the Moscow measure are the 1992 Convention on Double Taxation and the Prevention of Tax Evasion signed with the United States and similar documents signed with the United Kingdom (1994), Canada and Switzerland ( 1995).
The validity of tax agreements with Germany, France, Spain, Italy, Denmark, the Czech Republic and Finland, among others, will also be suspended, according to EFE.
In March 2022, Russia drew up a list of “hostile” countries, including Portugal.
The list of countries, drawn up following a presidential decree, includes foreign territories that Moscow says are taking hostile actions against the Russian Federation, Russian companies and citizens.
Last February, Putin had already terminated the double taxation agreement with Latvia and Denmark, which made a similar decision in July with regard to Russia.
Source: DN
