Suspension of the tax collusion between Russia and the USA

The order, temporarily eliminating a number of provisions of the U.S.-Russia tax treaty, will go in force as early as August 2024. This is due to the Presidential Decree of August 8, 2023.

The previously existing agreement between the Russian Federation and the United States provided some benefits, but it was limited almost entirely. Only some provisions remained in force.

Future novels will have an influence on the business activity of stock markets in both the US and Russia. The following changes are expected in terms of tax payments:

• Changes in tax precent on the dividends

Tax residents of Russia, who are gave an asset from USA actives, are going to start facing an tax increase of up to 30 precent.

Tax residents of the United States will pay tax on profits from assets located in the Russian Federation at the rate of personal income tax. This is currently 15 percent.

• Changes in the tax rate on the sale of securities

For residents of the Russian Federation who sell securities of companies from the United States, the situation will not change.

Non-residents realizing assets of Russian companies will have to withhold to the budget of the Russian Federation 30 percent of the profit from the transaction.

• The opportunity for tax credit will remain

The tax credit provisions are still in force, as they have not been repealed by decree. A resident of the Russian Federation who receives income from the United States is advised to submit a tax return for income received from sources outside of Russia.