Wednesday, June 9, 2021
Russia's President Vladimir Putin has signed a law to terminate the country's double tax agreement with the Netherlands.
Previously, the Russian Government had threatened to terminate its agreement with Cyprus after the two territories failed to agree changes. Eventually Cyprus agreed to a new Protocol that increases the rate of withholding tax that may be levied at source by Russia on outbound dividends and interest income to 15 percent. Russia wanted to introduce these provisions into its agreement with the Netherlands but the Dutch Government rejected the change.
Under Bill No. 1147902-7, which was approved by the lower house of parliament earlier this month, Russia would notify the Netherlands of its intention to withdraw from the double tax agreement by July 1, 2021, enabling it to terminate the deal with effect from January 1, 2022.