Russia to scrap tax agreement with Netherlands as proposed approach fails to combat capital outflows ...News

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Russia to scrap tax agreement with Netherlands as proposed approach fails to combat capital outflows
Russian lawmakers initiated denouncing a tax agreement with the Netherlands. The deal was designed to avoid double taxation, but so far negotiations have come to a deadlock. Russia’s finance ministry proposed new terms similar to those agreed with Cyprus, Malta and Luxembourg. Under the new terms Russia is planning to increase withholding tax on dividends and interest for Russia-focused companies registered in the Netherlands to 15 percent. “The existing agreement allows significant capital outflows, as the firms registered in the Netherlands are subject to a real tax rate of only 2-3 percent,” the ministry said.

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