Russian President Vladimir Putin has signed a decree on the suspension of certain provisions of tax treaties with the United States, several EU countries, and other “unfriendly states”. This decision comes as a response to the “unfriendly actions” of these countries, particularly those who have imposed sanctions on Russia.
The decree, which was published on Russia’s official legal information portal, states that the suspension of double-taxation treaties will remain in place until the foreign states in question eliminate the violations they have committed against the legitimate economic and other interests of Russia, as well as the rights of its citizens and legal entities. This move highlights Russia’s determination to protect its national interests and respond to perceived acts of hostility.
In addition to suspending the agreements between Russia and the US on the avoidance of double taxation and the prevention of tax evasion on income and capital, Moscow has also suspended double-taxation agreements with 38 other countries. This includes nations such as the UK, Canada, Switzerland, Japan, the Czech Republic, Denmark, Norway, Italy, Finland, France, Germany, and Spain, all of whom have imposed anti-Russia sanctions.
Double-taxation treaties are important agreements designed to ensure that individuals and companies are not subjected to double taxation on the same income in both their home country and the foreign country where the income is generated. These treaties provide clarity and certainty for taxpayers and facilitate cross-border business transactions.
However, in this case, the suspension of these treaties reflects Russia’s stance that it will not tolerate actions that it perceives as detrimental to its national interests. By suspending these agreements, Russia aims to exert pressure on the offending countries to reconsider and reverse their sanctions.
The Russian government has also taken into consideration the potential impact of the tax treaties’ suspension on the Russian economy. It has instructed the Cabinet of Ministers to take measures to mitigate any adverse effects. This demonstrates a proactive approach to minimize any unintended consequences that may arise as a result of this decision.
Furthermore, the Russian Foreign Ministry has been instructed to notify the relevant foreign states of the decision. This serves as a formal communication to inform these nations about the suspension of the tax treaties and serves to underscore Russia’s stance on the matter.
The decision to suspend these tax treaties aligns with the broader geopolitical tensions between Russia and the countries affected by the sanctions. It represents a tit-for-tat response from Russia, as it seeks to defend its sovereignty and protect its national interests in the face of what it perceives as hostile actions.
Russia’s finance and foreign ministries, who proposed the idea of scrapping the double-taxation treaties, have asserted the importance of protecting Russia’s economic and other interests. They believe that until the offending countries rectify the violations they have committed, the suspension of these tax treaties is necessary.
Overall, the suspension of these tax treaties by Russia reflects its determination to respond to what it deems as unfriendly actions by certain countries. By taking this step, Russia aims to protect its national interests and send a clear message to those who have imposed sanctions. The impact of this decision will be closely watched, particularly in terms of how it may affect cross-border business transactions and the broader geopolitical dynamics between Russia and the countries involved.
Source link
