Russia suspended and denounced tax agreement with Latvia

Russia suspended and then denounced an intergovernmental agreement with Latvia on the avoidance of double taxation and on the prevention of tax evasion in relation to taxes on income and capital, Deputy Finance Minister Alexei Sazanov said.

“The failure of Latvia to comply with the provisions of the agreement is a violation of its terms, and, accordingly, the Russian Federation suspends its operation. Given that the return of Latvia to fulfill its obligations under the agreement is unlikely, the agreement is also proposed to be denounced,” Sazonov explained (quote according to RIA Novosti).

Russian President Vladimir Putin in September 2022 suspended the agreement with Latvia on the avoidance of double taxation, follows from a decree published on the official portal of legal information.

Following the start of a special military operation on the territory of Ukraine, several Western countries, including the UK, Germany, the US and Switzerland, suspended the exchange of tax information with Russia and Belarus, making it more difficult for the Russian authorities to obtain information about the income of Russian individuals and companies controlled by them for abroad.

The Ministry of Finance had earlier begun preparing a list of friendly countries for the revision of double tax treaties (DTAs), Sazanov told Vedomosti. According to him, the ministry is preparing proposals to start negotiations with Malaysia, Turkey and the United Arab Emirates (UAE) for sending to the government.