The Russian government is moving to draft legislation aimed at partially suspending double taxation agreements with countries deemed unfriendly. A major national newspaper reports that the scope includes deals between Moscow and 38 foreign states, outlining a broad review of existing arrangements in this area.
The article emphasizes that official actions will target cooperation with the United States and European Union member states, with the changes extending to agreements with Canada and Japan as well. The plan reflects a strategic shift in how Russia manages cross-border taxation amid ongoing geopolitical tensions.
The publication notes that the draft document was prepared by the Ministry of Foreign Affairs in tandem with the Ministry of Finance. A government commission on legislative activities has already given this initiative its preliminary approval, signaling readiness for formal consideration in the near term.
Officials cited the severe impact of sanctions and persistent external pressure on Russia’s economy as the impetus for this move. The authors describe a measured approach to protecting fiscal stability while responding to external constraints on the national economy.
According to a representative from the State Duma, the bill to suspend tax agreements is expected to be forwarded to parliament for review by the end of January. Although President Vladimir Putin signed a decree earlier in the year suspending certain articles of double taxation agreements, lawmakers stress that legislative debate and ratification are essential for durable reform.
The Finance Ministry’s press service clarified that certain articles within the relevant agreements were effectively suspended on the date the decree was issued in August. Diplomatic notes to unfriendly states accompanied this step, signaling the formalization of the stance within the international framework.
Officials quoted by the ministry explained that the suspension targets only provisions that reduce tax rates on interest and dividends. The rules designed to prevent double taxation for individuals will remain in force, ensuring that personal tax obligations are not disrupted beyond the intended scope of reform.
Double taxation occurs when the same income is taxed by more than one country. In this context, the tax treatment of wages earned by Russians abroad is addressed by considering income as sourced in Russia. Whether Russian residents must pay income tax in other jurisdictions will depend on whether those states terminate their tax agreements with Moscow, a decision that lies beyond Russia’s direct control.
Earlier discussions in the State Duma highlighted proposals to significantly raise the cap on tax contributions, signaling an overarching fiscal strategy tied to the stance on international taxation. The evolving policy landscape reflects broader efforts to recalibrate economic and fiscal relationships in response to external pressures while prioritizing national economic interests.
As the legislative process unfolds, observers will monitor how the suspension of specific treaty articles interacts with Russia’s broader tax regime, including provisions related to cross-border investments and the treatment of foreign-source income. The changes are expected to shape the practical experience of multinational companies, residents working abroad, and other stakeholders navigating Russia’s evolving tax framework.
Overall, the move represents a deliberate shift in Russia’s approach to international taxation and treaty cooperation. It underscores the government’s readiness to adapt legal instruments in response to geopolitical developments while maintaining essential tax administration for individuals and businesses operating across borders.