The Federation Council has approved the denunciation of the tax agreement with the Netherlands

The Federation Council has approved the law on the denunciation of the intergovernmental agreement on the avoidance of double taxation with the Netherlands. The agreement will be terminated on January 1, 2022.

As part of the implementation of the presidential order, the Russian Federation proposed to the Netherlands to amend the intergovernmental agreement in terms of increasing the tax rate on income in the form of dividends and interest transferred to the offshore zone to 15% aimed at preventing the outflow of capital from national jurisdiction.

In turn, the Netherlands refused to make such amendments, insisting on increasing the list of income taxed at reduced rates, and intergovernmental negotiations were not successful.