Netherlands wanted to reconcile with Russia for taxes

The authorities of the Netherlands wanted to reconcile with Russia in the field of taxes and conclude a new agreement on the avoidance of double taxation (Sydin), said the representative of the Ministry of Finance of Remko Raus, which quotes TASS.

“As soon as we receive a notice, we will define what consequences it will have for Dutch business. In the meantime, we will continue the dialogue with Russia to find a decision,” said Rus.

According to him, Amsterdam knows that Moscow has emerged from the previous agreement, which has been operating since 1996. The new conditions offered by Russia (in particular, the requirements for the provision of benefits) do not suit the European country, because they can negatively affect its business.

The existing agreement allows capital from Russia to the Netherlands, paying taxes at preferential rates. In particular, dividends in favor of the Netherlands or Russian companies are subject to income tax at the source (payments) in a five-percent rate – provided that the recipient of dividends owns at least 25 percentage of the company’s company. Interest on loans, loans and bonds are taxed only in the country of registration of the recipient’s company.

In March last year, Russian President Vladimir Putin spoke with the initiative to revise Sydin with some countries, often used by the Russian business for the conclusion of capital, so that the tax rate on dividends, interest and royalties will be 15 percent.

Review the terms of contracts with Russia agreed Cyprus, Malta and Luxembourg. However, it was not possible to negotiate with the Netherlands, after which the State Duma denounced the agreement. By the end of June, Moscow should officially notify Amsterdam about this, in which case it will stop the action from 2022.

/Media reports.