Russia explained the idea of ​​abolishing double taxation treaties Russian News EN

Deputy Arefiev: double tax treaties deprive Russia of 5 trillion rubles annually

Russia annually loses up to five trillion rubles due to double taxation agreements. How does this system work and why? Moscow wants to cancel such agreements with hostile countries, explained the first deputy chairman of the committee in an interview with State Duma for economic policy Nikolai Arefiev.

According to the deputy, such agreements deprive Russia of revenue and must be terminated with all states.

“This means that our companies located in Russia are registered abroad or offshore. We pay taxes at the place of business registration and at the location of the business. They now pay taxes at the place of registration where they are registered. These oligarchs, who registered their companies abroad, asked the government to adopt a law on the prevention of double taxation, that is, not to pay taxes in Russia, so that the Russia waives its share of taxes, and they would only pay there,” the parliamentarian said.

Why do we lose five trillion rubles a year just because these taxes go abroad?

Nikolai ArefievDeputy of the State Duma

Ministry of Foreign Affairs and Ministry of Finance suggested President Vladimir Poutine suspend double taxation agreements with hostile countries.

The financial department explained that Russia will thus be able to respond to unilateral economic sanctions from Western countries, including inclusion blacklisted in tax jurisdictions European Union. It was proposed to temporarily suspend the action of the agreements, “until the violated rights of Russia are restored”.

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