Russia proposes denouncing tax agreement with Netherlands -draft document

Russian lawmakers on Friday proposed denouncing a tax agreement with the Netherlands designed to avoid double taxation, according to a draft document on the Russian government website. A number of large Russian companies are registered in the Netherlands.

Russian lawmakers on Friday proposed denouncing a tax agreement with the Netherlands designed to avoid double taxation, according to a draft document on the Russian government website. In March, President Vladimir Putin suggested a tax be levied on interest and dividend payments leaving Russia, to combat capital outflows as the country battles low oil prices and the COVID-19 pandemic.

In a separate statement on Friday, Russia's finance ministry said it has proposed increasing the tax on dividends and interest for Russia-focused companies registered in Netherlands to 15%, but that the talks had failed. Russia agreed deals earlier this year with Cyprus and Malta. A number of large Russian companies are registered in the Netherlands.