The proposed decision is a response to the country’s inclusion on the EU blacklist of uncooperative tax jurisdictions
The Russian Ministry of Finance and the Russian Ministry of Foreign Affairs have proposed to suspend double taxation treaties with the so-called ‘hostile’ country in response to Western sanctions, it was announced on Wednesday.
According to a statement posted on the Ministry of Finance’s Telegram channel, the economic restrictions imposed on Russia since 2022, as well as the country’s inclusion on the EU blacklist of uncooperative tax jurisdictions in February, “violates the norms of international lawand gives Moscow “reasons for imposing retaliatory measures”.
The two ministries suggested that President Vladimir Putin issue a decree suspending double taxation treaties with all countries that have imposed sanctions on Russia until the country “violated rights are restored”, read the statement.
Double taxation treaties are agreements between states to protect against the risk of the same income being taxed twice in both countries. Russia has such agreements with many countries, including EU member states, the UK, Australia, Canada and the US, all of which have imposed sanctions on Moscow.
If the ministries’ proposal is approved, tax exemptions under double tax treaties will be suspended.
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