The UK government appealed to Russia to resume participation in the bilateral Double Taxation Agreement, the British government announced on Aug.18.
Russia informed the British government about the suspension of virtually all key provisions of the agreement, many of which had been in operation since 1998. However, Russia hasn't completely halted the double taxation elimination provision.
Double taxation agreements prevent individuals and businesses from being taxed on the same income by two different countries, promoting fair and efficient cross-border economic activities.
The suspension implies that Russia could disregard predetermined restrictions on source-based taxation and offer only limited measures to mitigate double taxation within its territory.
The Convention expressly forbids such unilateral action.
Prior to the British appeal, Russian dictator Vladimir Putin suspended many of the double taxation agreements with 38 countries. The decision was made as an "urgent measure" due to the "unfriendly actions" of certain nations towards Russia.
Ukrainian State-Owned Enterprises Weekly
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