The Ministry of Finance intends to expand the list of benefits for business after the suspension of the double taxation agreement – ​​Kommersant

Forbes citing sources in the business and expert communities, he reported that the Ministry of Finance is considering expanding the list of benefits that will remain in place if the Double Taxation Avoidance Agreement (DTT) with “unfriendly countries” is terminated on August 8. According to the publication, at a meeting of the expert council of the State Duma Committee on Budget and Taxes on October 12, measures were also discussed to maintain reduced rates on payments in favor of international cargo carriers and benefits for paying off debts to Western investment funds.

Forbes writes that the Ministry of Finance does not object to such proposals and plans to maintain benefits on payments for international transportation until 2024. DTTs reduced the rate from 10% to 5% or eliminated it altogether. The Ministry of Finance also intends to allow the repayment of debts to Western investment funds and ongoing debt obligations under the previous tax conditions. When the tax treaty with unfriendly countries was terminated, the tax rate increased to 20%. Previously, interest payments were not taxed at all.

At the end of September, the Ministry of Finance decided to maintain tax benefits for six types of payments to unfriendly countries: interest on loans, license payments for software that has no analogues in Russia, aircraft rental and insurance payments, as well as for the purchase of sea vessels. When paying taxes, companies will be able to use the provisions that were valid before the suspension of the DTT. Tax agreements made it possible to reduce the tax on dividends from 15% to 5–10%, and on interest on loans from 20% to 0%.

On August 8, President Vladimir Putin signed a decree suspending the DTT. According to the decree, the agreement was terminated with 38 states that supported sanctions against Russia that began in February 2022.