Russia seeks tax compromise with Netherlands

09:28, 09 December 2020
Russia seeks tax compromise with Netherlands Photo: Moritz Wolf/ Look Press

Moscow is ready to compromise with the Netherlands on a tax agreement for another two months, the Russian Finance Ministry's press service said.

The deal on evasion of double taxation between Russia and the Netherlands may reportedly be canceled. Moscow seeks an agreement with Amsterdam on conditions previously discussed with Malta, Cyprus, and Luxembourg.

The denunciation process has already started. The last proposal that we received from the Dutch side did not allow us to come to a compromise since it meant maintaining channels for the withdrawal of income from Russia with minimal tax consequences about individual economic entities without a real economic presence in the Netherlands, RIA Novosti quotes the press service of the Russian cabinet.

It is currently possible to withdraw profits from Russia to the Netherlands by paying tax at an effective rate of 2-3%. In Russia, a similar percentage is 15% for dividends and 20% for interest. In this regard, the Ministry of Finance wants a 15% increase in tax from the source.

Preparing a bill on denunciation before its submission to the State Duma will take two months, and during this period, negotiations may continue.