Netherlands Looks to Salvage Terminated Tax Treaty With Russia

The Netherlands confirmed June 7 that Russia has officially notified it of the termination of their countries’ bilateral tax treaty.

Although the termination of the treaty “is a step in the wrong direction, it is not irreversible,” Hans Vijlbrief, Dutch State Secretary for Finance, Tax Affairs and the Tax Administration, said in a Ministry of Finance letter Monday.

• Russia wants to apply a higher rate of withholding tax to dividends in an effort to raise revenue and clamp down on tax-motivated treaty abuse. The Russian Ministry of Finance wasn’t immediately available for a comment.
• The Netherlands is against this ...