Denunciation of the Agreement with the Netherlands

The Ministry of Finance of the Russian Federation begins to denounce the agreement on the avoidance of a double taxation with the Netherlands. After several rounds of negotiations with the Kingdom of the Netherlands to amend the agreement to increase the withholding tax to 15% on dividends and interest, no agreement was reached.

It was assumed that the Russian Ministry would be able to agree with the Netherlands on the similar conditions previously agreed with Cyprus, Luxembourg and Malta, but the negotiations were not successful. According to the agency, the current tax agreement with the Netherlands provides for quite attractive tax conditions and allows you to withdraw profits from Russia, paying tax at a rate of 2-3% compared to the current 15% on dividends and 20% on interest in the Russian Federation. According to rough estimates, more than 1.2 trillion rubles were withdrawn in the previous three years.

Now the draft law on the refusal of the Russian Federation from the concluded agreement on the avoidance of double taxation with the Netherlands is being prepared for submission to the State Duma and is undergoing public discussion on the portal of draft regulatory legal acts. If the bill is approved, the additional funds received will be used to fulfill the social obligations of the state.

Link to source: https://minfin.gov.ru