Suspension of tax agreements with Western countries
Vladimir Putin has frozen almost half of the tax agreements currently in force. However, due to the partial nature of the cancellation of tax agreements, the consequences of these amendments will affect essentially only legal entities. In accordance with the adopted amendments, almost all payments in favor of foreign companies are subject to the increased tax rate. The Russian budget is recognized as the sole beneficiary. However, the total amount of receipts is insignificant.
Agreements allowing foreign companies receiving passive income in Russia to significantly reduce tax rates have been suspended. In addition, all provisions on tax benefits for income from the rental and sale of real estate, shares of companies and any business activity were suspended.
At the same time, some tax benefits remain in force. The exchange of information between the Federal Tax Service and colleagues abroad and, for example, payments on Eurobonds remains in force. In addition, there is also an opinion about the connection between the adoption of this legislation and the rapid increase in tax evaders.
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