Moscow Says Revision Of Double Tax Avoidance Deals May Cover 90% Of Transit Jurisdictions

MOSCOW (UrduPoint News / Sputnik - 23rd August, 2021) The revision of Russia's international agreements on the avoidance of double taxation could cover about 90% of all "transit jurisdictions," the Russian Foreign Ministry's Department of Economic Cooperation Director Dmitry Birichevsky said in an interview with Sputnik.

"We are negotiating with a number of nations. The Russian Ministry of Finance is directly involved in this effort. As far as we know, there is a proposal to revise the bilateral agreement with Switzerland. The finance ministry does not rule out inviting Hong Kong and Singapore to revise relevant bilateral agreements. According to expert estimates, this could cover around 90% of the so-called transit jurisdictions," Birichevsky said.

Late in May, Russian President Vladimir Putin signed a law denouncing the tax agreement with the Netherlands. In March 2020, the president ordered that income in the form of dividends and interest transferred to accounts abroad must be liable to a 15% tax, which requires a revision of double taxation avoidance agreements with foreign nations. The president warned that Russia would unilaterally withdraw from deals with countries that fail to accept the offer.

So far, agreements have been revised with Cyprus, Malta and Luxembourg, while the Netherlands confirmed earlier this summer receiving a notification from Russia on the tax deal denunciation.