The Russian government plans to sign an agreement to avoid double taxation with Oman, the draft document, previously prepared by the Omani side, was approved, Vedomosti learned.
What the document provides:
- the tax rate on dividend income will be 10%, subject to holding 20% of the company’s capital for 365 days, in all other cases the rate will be 15%, on interest and royalties – 10%;
- you can get tax exemption on dividends and interest if they are paid to the government, central bank or pension funds of Russia and Oman (applicants for such benefits are RDIF, VEB, Rostec, Rosnano, Rosatom, Roskosmos);
- The agreement will become effective on January 1 of the calendar year following the year in which the document becomes effective.
The agreement must be approved by the State Duma, currently the deputies are on vacation.
A representative of the Ministry of Finance confirmed to the publication that work is being done to prepare the signing of the agreement.
- Now Russia has tax agreements with more than 80 countries. In 2020, the Ministry of Finance began to review them after the President of the Russian Federation instructed to exclude situations of optimization of payments to the budget using tax havens and to increase the rate of withdrawal of dividends and interest to 15%.
- Tax treaties have already been renegotiated with Cyprus, Malta and Luxembourg. The Ministry of Finance was unable to reach an agreement with the Netherlands, so the agreement was denounced and ceased to be valid on January 1, 2022.
Author:
anastasia mariana
Source: RB
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