Russia and Abkhazia signed an agreement to avoid double taxation. The document must be ratified by the end of 2024 and is expected to come into force in 2025. In particular, it establishes uniform income tax rates.
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There will be no double taxation between Russia and Abkhazia. An agreement in this regard was signed by representatives of the governments of the countries, the Russian Ministry of Finance reported.
The document establishes uniform tax rates on royalties and dividend income of 10%. In addition, the tax rate on interest income will be 0% and will be paid to the budget of the state that issued the borrowed funds.
The agreement also cancels income tax for 18 months for developers in the country where construction takes place. During this period, the tax must only be paid in the country where the promoter resides.
The treaty is expected to be ratified at the end of 2024. In this case it will enter into force on January 1, 2025.
Author:
Kirill Bilyk
Source: RB
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