The State Duma has voted to denounce the tax treaty with the Netherlands / Comment / Business FM St. Petersburg
It will become more difficult to withdraw profits from Russia by paying symbolic interest. Vladimir Putin previously instructed that tax of 15% be imposed on income in the form of dividends and interest that are transferred to foreign accounts.
The Kingdom of the Netherlands has refused to raise the rate. In Moscow, however, they believe that the unwillingness to compromise saves the channels for withdrawing significant financial resources of Russian origin. According to the Ministry of Finance, in 2018 the volume of interest and dividend payments exceeded 410 billion rubles, while in 2019 it amounted to about 340 billion rubles. What will happen if the Russian-Dutch Treaty is terminated?
Andrei Gusev, Managing Partner at Borenius Russia, told Business FM St. Petersburg what situations may occur if the Treaty is terminated.