Russia set to end tax deal with ‘unfriendly’ countries

Russia proposed on Wednesday to suspend double taxation agreements with “unfriendly” countries in response to sanctions imposed on Moscow over the Ukraine conflict.

Double taxation treaties prevent people or companies who receive income abroad from also being taxed by their country of origin.

Russia’s foreign and finance ministries said they had proposed that President Vladimir Putin “issue a decree suspending double taxation agreements with all countries that have imposed unilateral restrictive economic measures against Russia.”

The ministries said it was a “retaliatory measure” against sanctions taken by hostile countries since 2022.

Their statement follows an EU decision this week to add Russia to its blacklist of tax havens.

The ministries declared themselves in favor of suspending the agreements “until Russia’s violated rights are restored.”

Russia has signed tax agreements with 80 countries, according to a list from the Russian Ministry of Taxes.

This includes most EU countries, Great Britain and the United States.

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