The Ministry of Finance has started negotiations with friendly countries to update the existing agreement or sign a new one to avoid double taxation (DTT), Vedomosti newspaper reports.
The basic version of DTT provides for rates for the payment of dividends, interest and royalties abroad of 10%, said Secretary of State and Deputy Minister of Finance Alexey Sazanov in an interview with the newspaper.
According to him, this is related to the rates offered in the special administrative regions for those who moved there from foreign jurisdictions.
The Ministry of Finance, according to Sazanov, is trying to avoid a repeat of the situation where companies use foreign jurisdictions mainly to obtain lower tax rates, creating holding companies there.
The terms of the new agreements must be economically justified and adequate to the tasks solved by the Russian Federation: to increase the influx of foreign investments and not lead to a decrease in the national tax base, the Deputy Minister noted.
In the summer of 2022, the Ministry of Finance began a campaign to review fiscal relations with countries that did not join the sanctions against Russia. The first and so far only jurisdiction with which negotiations were concluded was Oman.
Author:
Anastasia Marina
Source: RB
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