The Tax Agreement between Russia and the Netherlands denounced
The draft law on denouncing the Agreement was submitted to the State Duma by the Government of the Russian Federation
Earlier, the Russian side proposed the Netherlands the terms of revising tax agreements similar to those that were successfully signed with Cyprus, Luxembourg and Malta as there are substantial incomes from Russia that go through the Dutch jurisdiction.
However, the Netherlands did not agree with the proposal of the Russian Federation, insisting on expanding the list of income at reduced tax rates.
“The proposal of the Ministry of Finance of the Kingdom of the Netherlands could not be supported by the Russian side, as the adoption would mean that there would be channels for withdrawal of significant financial resources from the territory of the Russian Federation at reduced tax rates,” the text of the bill says. It also states that the proposals of the Dutch Ministry of Finance would undermine the measures taken by the Russian authorities to support the national economy and social programs, and would not help to fulfill the President's instructions.
“Taking into account that it was not possible to reach a compromise during the negotiations with the Kingdom of the Netherlands, the agreement is subject to be denounced,” the document says.
Earlier, the denunciation was supported by the Committee on International Affairs. Members of the Committee stressed that in current economic conditions, the preservation of bilateral Russian-Dutch cooperation in the tax area without making appropriate amendments would be contrary to the interests of the Russian Federation.
