Putin mooted the suspension of tax compacts with “antagonistic nations”.

The Ministry of Finance and the Russian Ministry of Foreign Affairs have proposed to President Vladimir Putin to suspend double taxation agreements (DTAs) with countries that have imposed sanctions. This is stated in the message from the Ministry of Finance.

Emigrants who continue to earn income in Russia, but live in states where there is no or no tax treaty, will have to pay taxes twice – in the new country of residence and in Russia.

“It is proposed to suspend the action of these agreements until the restoration of the violated rights of Russia,” said the Ministry of Finance.

The Ministry of Finance proposed to sever the DTC in response to the EU including Russia in the “blacklist” of tax jurisdictions. The consequences are increased monitoring of transactions between EU residents and Russian persons and an audit of transactions involving Russian persons.

The Ministry of Finance explained the claims of the EU against Russia by the work of “Russian offshores” – the special administrative regions (SAR) of Vladivostok and Kaliningrad. Contacts of the Ministry of Finance with the EU in the tax area ended in March 2022.

Russia has double tax treaties with 80 countries. Then the tax paid in Russia will be credited abroad. TNT has already been separated from the Netherlands and suspended from Latvia.

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