Publications / 4.09.2020

Short defectors: business finds a way to avoid new taxes / Comment / Izvestia.Ru

Entrepreneurs are considering moving from Cyprus to the UK, Ireland, Hong Kong and other countries.

Residents of Cyprus, Malta, Luxembourg and the Netherlands with Russian roots — it is they who face higher dividend rates — are looking for alternative opportunities to withdraw their capital. The Big Four accounting firms (EY, Deloitte, KPMG and PwC) told Izvestia newspaper about incoming requests for support in changing registration. Some clients are thinking about returning to Russia; however, many are planning to move to other jurisdictions, even if those jurisdictions are less attractive for tax purposes: the United Kingdom, Ireland, France, Hong Kong, and so on. Technically, registration in the Russian Federation may be more profitable, but many oligarchs do not live in their home country and prefer to build their businesses at their actual place of residence.

Andrei Gusev, Managing Partner at Borenius Russia, shared his point of view with Izvestia newspaper on what is most important for business in this situation.

Read the full article (in Russian)

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