Russia's Finance Ministry Initiates Denunciation Of Tax Agreement With Netherlands
Muhammad Irfan Published December 05, 2020 | 12:00 AM
MOSCOW (UrduPoint News / Sputnik - 05th December, 2020) The Russian Finance Ministry said in a press release on Friday it initiated the procedure of scrapping the bilateral agreement with the Netherlands that prevented double taxation as the sides failed to agree on amendments to the treaty.
"The [Russian] Finance Ministry held several rounds of talks with the Dutch Foreign Ministry on amending the agreement on prevention of double taxation to increase the withholding tax to 15 percent on dividends and interest. The [Russian] Foreign Ministry proposed to the Dutch side the same conditions as previously agreed with Cyprus, Luxembourg and Malta, but the talks did not yield success," the press release read.
As for the Netherlands' proposed amendments, the ministry said Russia could not accept them as they provided for loopholes to withdraw taxable funds from the country.
"The tax agreement with the Netherlands, as it is now, provides rather attractive taxation conditions and makes it possible to withdraw revenues from Russia under a 2-3-percent tax, whereas the actual tax in Russia is significantly higher � 15 percent on dividends and 20 percent on interest for legal entities," the ministry said.
More than 1.2 trillion rubles ($16 billion) were withdrawn from Russia to the Netherlands this way in the period from 2017-2019, as stated in the press release.
According to an entry on the Russian government's portal of legal news on Friday, the finance ministry already began works on a draft law terminating the tax agreement with the Netherlands.
Related Topics
Recent Stories
US wants basic human rights for Imran Khan, all other prisoners
Hajj season begins: Karachi Airport Set for Inaugural Flight
IHC orders Jail officials to shift Bushra Bibi to Adiala Jail from Bani Gala
Projects of worth $25b being implemented in Pakistan under CPEC framework: Ahsan
Saudi investors evince special interest in diverse fields
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 8 May 2024
Today Gold Rate in Pakistan 08 May 2024
Delegation of international investors meets Finance Minister
Federal Govt stands with Balochistan for its development: Naqvi
UAE President receives condolences of Prime Minister of Pakistan over passing of ..
ECC approves to enhance wheat procurement targets
UN urges Israel to 'stop escalation' as tanks enter Gaza's Rafah city
More Stories From Business
-
Germany's industrial output shows decline in March
34 minutes ago -
Turkish stock exchange opens midweek up
53 minutes ago -
Projects of worth $25b being implemented in Pakistan under CPEC framework: Ahsan
1 hour ago -
Chinese yuan weakens to 7.1016 against USD Wednesday
2 hours ago -
Exchange rates for currency notes
3 hours ago -
Foreign exchange rates
3 hours ago
-
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 8 May 2024
4 hours ago -
Today Gold Rate in Pakistan 08 May 2024
5 hours ago -
Delegation of international investors meets Finance Minister
14 hours ago -
ECC approves to enhance wheat procurement targets
14 hours ago -
UBS back in profit after Credit Suisse takeover losses
14 hours ago -
Minister for Planning, Development and Special Initiatives Ahsan Iqbal leaves for China
15 hours ago