MOSCOW (Pakistan Point News / Sputnik - 22nd December, 2020) Russia should denounce its double taxation agreement with the Netherlands as soon as possible to halt the withdrawal of capital abroad, Russian lower house speaker Vyacheslav Volodin said on Tuesday.
During a plenary session, the lower house ratified deals on increasing the withholding tax to 15 percent on dividends and interests with Cyprus and Luxembourg. Moscow aims to sign a similar agreement with Amsterdam.
"One more country is left, the Netherlands ... Therefore, let us put an end to this issue together as soon as possible, taxes must be paid inside the country [Russia]. And those who want to withdraw them must understand that they will have to pay taxes in any case and develop their economy, contribute to the development of health care, education, and engage in social protection of our citizens," Volodin said, adding that the denunciation of the Russia-Netherlands agreement on double taxation should happen "as soon as possible."
The speaker said that the country cannot tolerate the fact that some companies often use an opportunity to withdraw huge funds abroad.
Volodin also thanked Russian Prime Minister Mikhail Mishustin, who has confirmed that he would continue fighting against the withdrawal of capital.
In early December, the Russian Finance Ministry initiated the procedure of scrapping the bilateral double taxation deal with the Netherlands, citing a failure to agree on amendments to the treaty. Moscow insists that Amsterdam was offered the same conditions as Cyprus and Luxembourg, but talks ended in a deadlock.
The Netherlands initially said that the Russian proposal would end in negative consequences for businesses of both countries, while Moscow argued that amendments proposed by Amsterdam envision loopholes for the withdrawal of taxable funds. The Dutch Ministry of Finance subsequently told Sputnik it was ready to revise the double taxation avoidance deal with Russia.
