Switzerland decides to suspend the exchange of tax information with Russia

The Swiss government has decided to temporarily suspend the exchange of tax information with Russia, which has been ongoing since 2018, about this reported press office of the Swiss Federal Council.

“At a meeting on September 16, 2022, the Federation Council decided not to temporarily transfer tax information to the Russian Federation. <...> The temporary suspension affects all forms of tax information exchange with the Russian Federation, i.e. automatic exchange of information on financial accounts and country reports, exchange of information on request and spontaneous exchange of information,” the document says.

Following the start of a special military operation on the territory of Ukraine, several Western countries, including the UK, Germany and the US, 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 abroad.

The list of countries that do not exchange tax information with Russia is used for the purpose of taxing the profits of controlled foreign companies. According to Russian law, the profits of a controlled foreign company are exempt from taxes in some cases if its permanent location is a state or territory with which Russia has a tax treaty, provided that they are not included in the specified list. Tax data exchange is used to avoid double taxation.

At the end of August, the Federal Tax Service (FTS) of Russia suggested add Canada to the list of states that do not exchange tax information with Russia. Now it includes 98 states and 18 territories. According to the draft order, from next year it will include only 90 states and 17 territories.

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