Current status of the Double Taxation Avoidance Agreements (DTA) concluded by Russia (as of February 25, 2025)

Current Agreements:

Abkhazia, Azerbaijan, Algeria, Argentina, Armenia, Belarus, Botswana, Venezuela, Brazil, Vietnam, Egypt, Israel, India, Indonesia, Qatar, Iran, Kazakhstan, Kyrgyzstan, China, Hong Kong, DPRK, Malaysia, Cuba, Kuwait, Lebanon, Mali, Morocco, Mexico, Syria, Moldova, Namibia, Oman, Saudi Arabia, Tajikistan, Thailand, Ecuador, South Africa, Turkmenistan, Turkey, Philippines, Chile, Sri Lanka.

Netherlands - DTT denounced and ceased to be effective as of 01.01.2022.

Ukraine - DTT was denounced and ceased to be effective as of 01.01.2023.

Denmark - DTT was denounced and ceased to be effective as of 01.01.2024.

Latvia - DTT denounced and ceased to be effective as of 01.01.2024.

Lithuania — DTT denounced, ceases to be effective from 01.01.2026.

DTT, the partners of which took retaliatory measures:

• The agreement is suspended completely:

United Kingdom. The United Kingdom has notified Russia of the complete suspension of the provisions of the DTT from 06.04.2025.

Canada. Canada, by note dated 20.11.2024 No. 0088/24, informed about the complete suspension of the DTT from 18.11.2024.

Sweden. Sweden, by note No. 64/27 dated 25.10.2024, informed about the complete suspension of the DTT from 10.02.2025.

• The agreement has been partially suspended:

Austria. Austria has issued a notification according to which the provisions of the DTT suspended by Russia are also suspended by Austria from 06.12.2023.

USA. The USA, by note dated 17.06.2024 No. 213-n, notified that the provisions of the DTT suspended by Russia are also suspended by the USA from 16.08.2024.

France. France, by note dated 12.02.2024 No. 2024􀕟0063519, informed that the provisions of the DTT suspended by Russia are also suspended by France from 08.08.2023.

Czech Republic. By note dated 13.09.2023 No. 1688􀕟1/2023􀕟MZV/MOSK, the Czech Republic informed that it will not comply with the provisions of the DTT suspended by Russia from 11.08.2023.

• DTT, the partners of which expressed protest:

Greece. Greece reserves the right to resort to appropriate measures based on international law in accordance with note No. 1153DIM/AP 1307 of 17.11.2023. No subsequent official notification of specific measures has been received.

Poland. Poland, by note dated 18.10.2023 No. PD.2701.2.2023, informed that it does not take into account the information about the suspension of the application by the Russian side of certain provisions of the DTT.

Romania. Romania reserves the right to take appropriate measures in accordance with the Vienna Convention on the Law of Treaties, in accordance with note No. G1/1982 of 19.09.2023. No subsequent official notification of specific measures has been received.

Switzerland. Switzerland is considering the possibility of a partial suspension of the DTT as a countermeasure in accordance with Note No. 187 of 27.12.2023.

Japan. Japan protested to Russia over the suspension of certain provisions of the DTT and demanded that this decision be cancelled..

• DTT, the partners to which have not responded in any way. (In our opinion, the fact that the said countries have not officially responded to the suspension of the DTT by the Russian Federation does not automatically mean that the partner countries themselves are ready to apply the DTT to payments in favor of tax residents of the Russian Federation):

Australia, Iceland, Malta, Slovakia, Albania, Spain, New Zealand, Slovenia, Belgium, Italy, Norway, Finland, Bulgaria, Cyprus, Portugal. Croatia, Hungary, Korea, Serbia, Germany, Luxembourg, Montenegro, Ireland, Macedonia, Singapore.

The Decree (Decree of the President of the Russian Federation dated 08.08.2023 No. 585) suspended the provisions establishing taxation rules:

• income from capital;
• all passive income (dividends, interest, royalties);
• income from international transportation;
• professional and other income.

As a result, for all types of listed income paid from the Russian Federation, the tax rates established by the Tax Code of the Russian Federation will be applied, in particular:

• 15% — when calculating the tax on dividends paid to a resident of an unfriendly jurisdiction (instead of 5% or 10% in a number of DTTs);
• 25% — when calculating tax on interest, royalties, rent from property located in the Russian Federation and other similar income.

For all types of listed income paid from unfriendly countries in favor of the Russian Federation, the following will be applied:

• In the event that a partner country under the agreement has taken retaliatory measures against the Russian Federation, the rates established by the national legislation of the partner country;
• If the partner country has not taken retaliatory measures, in some situations it will be possible to apply the rates established by the DTT.

Offset by Russian taxpayers of the amount of tax paid in an unfriendly state.
In the Russian Federation, offsetting the amount of tax paid in an unfriendly state will still be possible (subject to compliance with the requirements of Articles 232 and 311 of the Tax Code of the Russian Federation regarding the list of documents, their execution and application for offset).

Offsetting by foreign taxpayers of the amount of tax paid in the Russian Federation.

Regardless of whether the domestic legislation of a foreign state provides for tax offsetting or not, foreign parties to cross-border transactions may be fully or partially denied offsetting taxes paid by them in the Russian Federation:

• foreign tax authorities may refuse to apply a deduction/credit for the entire amount of tax paid in the Russian Federation as “overpaid” not in accordance with the rules of the DTT; or
• a deduction/credit will be possible in the amount of tax paid in the Russian Federation only in the amount that the taxpayer should have paid based on the terms of the DTT.