The Russian President, Vladimir Putin, signed a decree suspending some provisions of tax treaties with the United States, European Union countries and other non-friendly countries.
According to the presidential decree, the decision was taken "on the basis of the need for urgent action" regarding the unfriendly actions of some countries.
The validity of the documents included in the decree is suspended “until foreign states put an end to their violations of Russia’s legitimate economic and other interests, and the rights of their citizens and legal entities” or until the relevant documents cease to function.
At the same time, the Russian President instructed the government to take measures to reduce the impact on the country's economy of the consequences of suspending the aforementioned tax treaties, and the Council of Ministers is required to submit to the State Duma a draft law on the suspension of such documents, and the Russian Ministry of Foreign Affairs has also been instructed to notify the foreign countries of the decision.
In particular, the decree suspends some articles of the treaty between the Russian Federation and the United States on the avoidance of double taxation and the prevention of tax evasion on income and capital of 1992, the agreement between the governments of Russia and Britain on the avoidance of double taxation of 1994, and the agreement between the governments of Russia and Canada on the avoidance of double taxation 1995, Russia's agreement with Switzerland on the avoidance of double taxation of 1995, as well as tax documents with the Czech Republic, Denmark, Norway, Italy, Finland, France, Germany, Spain and other countries.
Last February, Putin agreed to suspend the agreement with Latvia on the avoidance of double taxation. In addition, Russia notified Denmark last July of canceling the agreement on avoiding double taxation.
Double taxation is the taxation in different countries of the same income of a person or company, if, for example, he is a citizen of one country and receives income in another one. Double taxation agreements were designed to prevent this, as they were concluded to encourage the development of economic cooperation among countries.
Source: National Iraqi News Agency