The Russian Ministry of Finance has initiated negotiations with a number of partner nations to establish or renew double taxation agreements (DTAs). A common starting point in these talks places a 10% tax rate on cross-border payments of dividends, interest, and royalties. This framework was reported by Vedomosti and reflects a broader strategy aimed at aligning international tax rules with domestic economic goals.
According to Deputy State Secretary of the Ministry of Finance, Alexei Sazanov, the 10% figure represents a universal compromise proposed to partner countries. The central objective driving these negotiations is to deter the use of foreign jurisdictions as conduits to lower tax burdens. Provisions within any DTA should support the nation’s intent to spur investment, while preserving the domestic tax base and avoiding erosion of government revenues. To date, Oman stands as the only country where negotiations have reached conclusion and a treaty has been signed.
The proposed DTA with Oman includes a 15% withholding tax on dividend income, with a reduced rate to 10% if the foreign company holds at least a 20% stake in the domestic enterprise. Active discussions are continuing with the United Arab Emirates, yet both sides have not yet reconciled all outstanding issues. Earlier expectations of finalizing a DTA with Malaysia have not materialized, and negotiations with Türkiye have been suspended. A DTT that once enjoyed support from 38 states was frozen following a presidential decree, reflecting political and strategic shifts affecting multilateral tax cooperation.
In mid-August, the Russian Ministry of Finance also put forward a condition to the United Kingdom concerning the restoration of tax treaties, signaling a broader movement to reestablish bilateral frameworks in the post-pandemic period. The trajectory of these negotiations is closely watched by Canadian and American businesses that rely on cross-border trade, investment flows, and a stable, predictable tax environment to inform their planning and capital allocation.
Beyond these developments, Russia has previously entered into a tax treaty with Oman, underscoring a pragmatic approach to select strategic partnerships while negotiations with other major economies proceed at varying speeds. Stakeholders in North America looking at Russia’s tax treaty landscape should consider how these agreements influence outbound investments, royalty structures, and the treatment of passive income in international portfolios. The ongoing talks emphasize the importance of clear tax rules for dividends, interest, and royalties in fostering investment confidence and aligning cross-border operations with long-term growth goals.