Double Tax for Multinationals if Russia Rips Up Dutch Treaty

Dutch multinationals doing business in Russia could be hit with higher taxes if Moscow carries through on a threat to abandon a 25-year-old tax treaty.

A Russian minister said Wednesday the country would abrogate its pact if the Netherlands won’t agree to change the treaty. That could result in double taxation as early as next year not only for Dutch companies, but also for U.S. and international businesses that invest in Russia through Dutch entities.

The Dutch government has warned the move would hurt Dutch business. A Philips spokesman says the company is monitoring the debate, but declined to comment ...