Russia and Switzerland change tax agreement

Now interest and dividends withdrawn abroad will be taxed at the rate of 15 percent.

Russia initiated the amendment of the tax agreement with the Swiss Republic.

Negotiations on this issue are scheduled for November.

Recall that the Ministry of Finance previously announced plans to revise tax agreements with Hong Kong, Singapore, and Switzerland. Since the agreements with Cyprus, Luxembourg and Malta have already been changed, the coverage of payments to offshore zones will be about 90 percent.

The Netherlands did not accept the conditions proposed by Russia and for this reason the agreement on tax benefits was denounced.

In 2020, President Putin proposed to raise the amount of taxes on income withdrawn abroad: interest and dividends to 15 percent, which is commensurate with the rate in Russia. After that, the relevant ministries initiated the revision of international treaties on the avoidance of double taxation in offshore jurisdictions.