Russia may withdraw from double taxation agreements

Russian government held a meeting chaired by Prime Minister Mikhail Mishustin to discuss measures to prevent the spread of the coronavirus in Russia and reduce its impact on the economy, website of the government reports.

“The immediate measures include reducing national insurance contributions for small and medium-sized businesses from 30 to 15% on the portion of wages that is above the minimum wage [RUR 12,130 ($155) a month]. The government will have the right to defer all taxes on small and medium-sized businesses and we will enforce this immediately as soon as the respective bill is drafted,” Mishustin said. “We must also put a moratorium on initiating bankruptcy proceedings. While the moratorium is in place, enforcement proceedings as well as penalties and fines will be suspended. Amicable settlements on debts will also be simplified.”

As he noted, Finance Ministry is to review “all the double taxation agreements with our foreign partners. The tax on dividends transferred abroad must be charged at a rate of at least 15%. In the event of refusal by our partners, we will have to consider unilateral withdrawal from these treaties.”

“We are restricting the external flow of people who could be carrying the infection. From 27 March, regular and charter flights between Russian airports and other countries will be suspended, with the exception of the flights evacuating the Russian nationals who are currently abroad,” Prime Minister pointed out.

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