The Russian Finance Ministry will propose amending taxation deals with Hong Kong, Singapore and Switzerland, Deputy Finance Minister Alexey Sazanov said on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 11th May, 2021) The Russian Finance Ministry will propose amending taxation deals with Hong Kong, Singapore and Switzerland, Deputy Finance Minister Alexey Sazanov said on Tuesday.
In March 2020, Russian President Vladimir Putin ordered to increase income tax on dividends and interest transferred to foreign accounts. This required adjusting agreements with other countries to avoid double taxation. The head of state warned that Russia would unilaterally withdraw from agreements with countries that would not accept its proposals.
The changes have so far affected four countries � Cyprus, Malta, Luxembourg and the Netherlands. Tax treaties with Malta, Cyprus and Luxembourg have been amended, while the procedure for the denunciation of the agreement with the Netherlands has been launched.
"We have three key jurisdictions left �� Switzerland, Hong Kong, Singapore. We will also propose amendments to the agreements. This will allow us to cover more than 90% of payments to transit jurisdictions and additionally replenish the treasury of Russia," Sazanov told lawmakers of the lower chamber of Russia's parliament.
