Russia Moves to Withdraw From Tax Treaty With Netherlands

Netherlands and Russia failed to reach agreement on changing double-taxation treaty, with each side rejecting the other’s proposals, Russian Finance Ministry says in statement.

• Russia sought to raise taxes on dividend, interest payments to 15%, similar to agreements with Cyprus, Luxembourg, Malta
• Netherlands’ proposals would have preserved “channels for withdrawing money” from Russia, ministry says
  • In 2019, more than 339 billion rubles ($4.6b) in dividend and interest payments flowed to Netherlands, compared with 457 billion rubles in 2017
• Ministry started procedure for pulling out of treaty, submitting draft law for public discussion
• READ: Russia’s Hunt for Revenue Puts a Spotlight ...