Double Tax Agreement Russia


One of the main provisions of the Russian Double Taxation Convention concerns permanent establishments that can take this form: since 2002, the date of entry into force of the new Law on Income Tax, it has changed the tax system applicable to foreign companies operating in Russia. The old, highly bureaucratic procedure is now being replaced by a very simplified procedure that allows investors to use the double taxation treaties that Russia has signed over the years with different countries more quickly. Under the agreement, withholding tax on dividends in Russia for qualified Hong Kong companies is now taxed at less than 5% or 10% as non-contractual companies, depending on the participation of the dividend recipient. The agreement also provides for a Russian withholding tax of zero percent on interest and a cap of 3 percent on Russian withholding tax on royalties. Together, these provisions represent a 17% reduction in the exempt tax rate. A detailed comparison of Russian withholding tax rates for Hong Kong residents before and after the agreement is presented below: members of the Eurasian Economic Union armenian, Belarusian, Kyrgyz and Kazakhstan all have additional free trade status with Russia through the EAWU partnership. Here you will find an introduction to the double taxation conventions of the Member States of the European Union. Preferential taxation applies to institutional investments as well as to listed companies that, during the year, hold at least 15% of the shares and hold at least 15% of the share capital in the company paying this income. The exemptions also apply to income received by these companies on interest on bank loans, outstanding Eurobond loans, as well as on bonds issued by governments, central banks, pension funds and insurance companies of the countries participating in the agreement. The revision of treaties with foreign partners is carried out on the instructions of President Vladimir Putin. Addressing the nation in March 2020, the president pointed out the injustice of taxing offshore companies at rates below income tax in Russia.

The president ordered the adaptation of the DBA agreements with these countries to ensure that income, such as interest and dividends paid abroad, is taxed at the same rate as in Russia, which is 15%. To help you understand Russian double taxation treaties, business license applications and the processing of tax office applications, please contact us at russia@dezshira.com for further assistance. In his remarks, the President discussed tax issues, including the need to amend the current provisions on withholding tax on dividends and interest in Russian double taxation (DTT) conventions. Russia Briefing is produced by Dezan Shira & Associates. The company supports foreign investors in Russia and Russian investors in Asia and maintains partner offices in Moscow and St. Petersburg, as well as fully professional service offices in China, ASEAN and India. Please contact us at the russia@dezshira.com for assistance or visit our website under www.dezshira.com agreement between the Government of the Russian Federation and the Government of the Republic of Albania aimed at avoiding double taxation in relation to taxes on income and capital The main purpose of these treaties is to protect the investor against double taxation for the same income in two different countries and to create tax discrimination have not been signatories abroad….

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