The Russian Ministry of Finance begins negotiations with friendly countries on the conclusion or renewal of double taxation agreements (DTAs) with a standard proposal – tax rates on payments of dividends, interest and royalties abroad amount to 10%. This has been reported “Vedomosti”.
As Deputy State Secretary of the Ministry of Finance Alexei Sazanov said, this is a universal compromise formula that the ministry offers to partners. The basic principle of the negotiations is that businesses should not use foreign jurisdictions to reduce tax rates, the agreement provisions should be consistent with the objectives of increasing investment and should not lead to a decrease in the tax base. The only country where negotiations have been completed so far is Oman.
The agreement includes a 15% rate on dividend income, which is reduced to 10% if the company owns at least 20% of the capital. Active negotiations are also ongoing with the UAE, but so far the parties have not been able to reach a consensus. It was previously expected that a DTT with Malaysia would be concluded, but there was no news about it. Negotiations with Türkiye were suspended. DTT, whose sanctions were supported by 38 states, was frozen in accordance with the presidential decree.
In mid-August, the Russian Ministry of Finance presented the UK with a condition for reinstating tax treaties.
Previously Russia and Oman signed tax treaty.