Foreign investors who are operating a company in Russia
are entitled to benefit from the provisions of the double taxation treaties
signed by the representatives of the state, as long as the country in which the businessmen are tax residents
has signed a treaty for the avoidance of double taxation
with this country. The main aspects of a double taxation agreement (DTA)
refer to various tax reductions or exemptions
applicable to companies
or natural persons, for matters such as royalties, dividends, capital gains
and many others. Our team of company formation representatives
can provide an in-depth presentation to the investors who are interested in opening a company in Russia
DTAs signed by Russia
At the moment, Russia signed DTAs with the following contracting states: Albania, Algeria, Argentina, Australia, Austria, Armenia, Azerbaijan, Belarus, Belgium, Botswana, Bulgaria, Canada, China, Chile, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Kazakhstan, North Korea, South Korea, Kuwait, Kyrgyz Republic, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Mali, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Namibia, Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Qatar, Romania, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, Spain, South Africa, Sri Lanka, Sweden, Switzerland, Syria, Tajikistan, Thailand, Turkey, Turkmenistan, Ukraine, United Kingdom, United States of America, Uzbekistan, Venezuela, Vietnam.
Legal aspects related to the DTAs concluded in Russia
The DTAs signed by Russia with other contracting states are drafted in accordance with the Model Agreements on Avoidance of Double Taxation of Income and Property.
At the same time, the Russian DTAs also take into consideration the provisions of the Model Tax Convention on Income and Capital imposed by the Organisation for Economic Cooperation and Development (OECD).
The documents refer to the taxation of residents and legal entities, tax residents of one of the contracting states mentioned above, and it prescribes the way in which it is applied for numerous aspects, such as:
• taxation of residents;
• taxation on permanent establishments;
• taxation of dividends and royalties.