The Federation Council of the Russian Federation has approved a law to suspend several provisions of international tax treaties with 38 states
The approved measure affects countries that have taken actions deemed unfriendly toward Russia. Among these are the United States, Canada, the United Kingdom, Germany, France, and other European nations, as well as Japan, Australia, and New Zealand. The law suspends the majority of treaty provisions that determine where income earned by residents and businesses of these states is taxed within Russia.
In addition, the document notes that opportunities to benefit from reduced rates, tax incentives, and exemptions under these agreements are being removed. The suspension targets specific categories of income including dividends, interest, income from real estate or other property transactions, income from the transfer of intellectual property rights, employment income, and other earnings streams.
At the same time, certain clauses of international agreements will remain in force. These preserved provisions include general rules, mechanisms to prevent double taxation, coordinated procedures for addressing cross-border tax issues, information exchange between the tax authorities of the two countries, and tax privileges for diplomatic staff.
Earlier, Russia began developing a legislative bill aimed at safeguarding business tax benefits amid evolving international relations.
Previously, the European Commission approved a mechanism intended to block profits derived from frozen Russian assets.
Analysts note that the move could reshape cross-border tax planning and influence how multinational entities manage tax obligations in markets aligned with or opposed to Moscow’s policy stance.
For observers in Canada and the United States, the development underscores the broader trend of revenue protection measures and the recalibration of international tax cooperation in response to geopolitical tensions. The shift may prompt revisions to corporate structuring and relocation strategies as firms review where income is sourced and taxed under evolving treaty landscapes.
In the broader context, the Russian government emphasizes safeguarding domestic fiscal interests while continuing essential cooperation on elements not directly affected by the suspension. The ongoing discourse includes how double taxation rules will be applied and what transitional arrangements will govern existing fiscal relations during the adjustment period, with priorities stated to minimize disruptions for legitimate business activity and the governance of international tax compliance. [Attribution: Russian Federation press release and official statements]