On 11 August, Russian Deputy Prime Minister Alexei Overchuk said in a televised meeting with Putin that Russia was reviewing the country`s other double taxation conventions. CHEBOKSARY, September 30. /TASS/. Russia considers the Netherlands a high priority for the revision of tax agreements, and discussions continue here, said Russian Finance Minister Anton Silouanov reporters. Wednesday. Double taxation is when taxes are paid twice on the same income in dollars, whether it is business income or individual income. Malta, another island state, also agreed to a new protocol at its 2013 DBA. According to the protocol, the withholding rate is increased to 15 per cent on dividends and interest collected. Exemptions are granted for certain institutional investments. The agreement between Malta and Russia was signed on 13 August. The outcome of the discussions with the Netherlands is not yet known, but it is worth preparing, so we should expect the treaty with the Netherlands to be amended in the same way. As we understand it, Russia has also had discussions with the Netherlands in previous years on clarifying other tax issues related to the double taxation convention. The outcome of these discussions is not known, even if the Dutch internal market is taken into account in relation to other jurisdictions.
It is possible that Russia and the Netherlands will agree that the amendments will come into force in 2021. The new requirements introduced by the multilateral instrument (for example. B the main audit, the minimum participation period of 365 days for dividends, etc.) should be included in the renegotiated contract. Cross-border taxation is a complex area of tax policy. If one company is headquartered in one country, offices in another and sales in another, the laws of the three countries must be taken into account. The tax policies of different countries often overlap, so that revenues from sales in one country can be taxed twice – first, in the country where the sale is made by a local office, and second, if those revenues are paid in the form of dividends to the parent company in another country. Contracts to avoid double taxation are needed. For example, a person or company working temporarily in another country would benefit from contracts that would avoid double taxation. As a result, tax agreements reduce barriers to international investment, which can benefit the country of origin by creating business growth in their own countries. However, in the current situation, Russia is changing course to protect its tax base by increasing taxes on cross-border income. The base is the total amount of income, assets, assets, assets, consumption, transactions or other economic activities that are taxed by a tax authority. A narrow tax base is not neutral and ineffective.
A broad tax base reduces the costs of tax administration and allows for more revenue at lower rates.