The State Duma voted for a gap of an agreement to avoid double taxation (Sydin) with the Netherlands, reports Interfax. Thus, payments to this European country will be taxed for income tax at full rate.
The question of denunciation of the agreement with the Netherlands was raised after the Russian authorities could not agree with Amsterdam on a significant change in its conditions. A key change should have increased increasing rates of income tax on dividends and interest at the source up to 15 percent.
The Russian president Vladimir Putin acted as an initiative. In his opinion, such a measure is fair, since individual foreign countries are often used to derive capital through dividends, interest, royalties and other payments, including offshore jurisdictions.