Publications / 11.02.2021

Capital discount: Amsterdam has announced a condition for the tax treaty with the Russian Federation / Comment / Izvestia.Ru

The Netherlands has announced a key condition for the Double Taxation Avoidance Agreement (DTAA) with the Russian Federation. This follows from the response of the Ministry of Finance of the Netherlands to a request from Izvestia newspaper. Amsterdam is ready to sign a treaty with Moscow if it includes benefits for real private Dutch businesses investing in Russia. The Russian Federation had previously offered the Netherlands a new DTAA under a standard model, similar to the agreements already concluded with Cyprus, Malta and Luxembourg. The document did not provide for benefits for private business – the only exceptions were public companies. The Netherlands rejected this offer. Then the Ministry of Finance of the Russian Federation threatened the Netherlands with a complete rupture of tax agreements. Experts believe that Moscow can meet Amsterdam halfway without creating a loophole allowing Russian businesses to withdraw capital.

Andrei Gusev, the Managing Partner at Borenius Russia, commented to Izvestia on what conditions are in the current agreement with the Netherlands.

Read the full article (in Russian)

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