Russia has signaled a reconsideration of its double taxation agreements (DTAs) with Saudi Arabia and Qatar after productive talks with the United Arab Emirates. The disclosure comes through the business daily Vedomosti, citing statements attributed to the Deputy Minister of Finance, Alexei Sazanov, and noted by the Foreign Ministry’s spokesperson. The approach suggests Moscow is seeking clarity and potential adjustments in its tax framework with major Gulf partners, pending formal replies from the two signatory countries.
According to the report, the Russian Ministry of Finance has already dispatched formal requests to the relevant authorities and is awaiting a response. This step follows recent public remarks that ongoing discussions about new tax accords between the UAE and Russia had reached a standstill, with Abu Dhabi indicating a willingness to consider a 10-10-10 framework. In this arrangement, the tax rates would be 10% on interest, dividends, and royalties, provided that similar rates are adopted by neighboring Arab economies.
Within the current discussions, the DTAs with Saudi Arabia and Qatar are described as increasingly attractive for Russian business and state-linked entities. The information notes specific rate terms: a 5% levy on dividends for corporate entities, and a 0% rate for certain categories tied to state-owned companies; loan interest would likewise be taxed at 5% in both jurisdictions. The royalty rates are differentiated, standing at 10% for Saudi Arabia and 0% for Qatar. These terms are presented as potential benchmarks in the broader conversation about tax cooperation in the Gulf region.
The timing of these strategic tax considerations coincides with other economic moves in Russia’s foreign trade posture, as analysts observe a widening network of tax accords influenced by regional alignments. Separately, a note has been included that Russia intends to expand agricultural exports, with beef shipments to Malaysia slated to begin, signaling parallel efforts to diversify and deepen trade ties beyond energy-centric interactions.
Market observers emphasize that any formal changes to DTAs would hinge on mutual agreement and the alignment of tax regimes across the involved states. Stakeholders in Moscow and the Gulf regions will be watching how these negotiations unfold, and what practical effects the revised rates might have on cross-border investment, profits repatriation, and the cost of doing business for both Russian firms and Saudi or Qatari counterparts.
In sum, Moscow appears to be pursuing greater symmetry in tax treatment with key Gulf partners, while maintaining flexibility as it evaluates responses from Riyadh and Doha. This posture aligns with broader aims to stabilize fiscal relations in a shifting regional trade landscape, and to reinforce strategic economic ties through more predictable and harmonized tax rules. (Source: Vedomosti reporting on statements from the Russian Ministry of Finance and the Foreign Ministry.)