Denmark has notified Russia of the denunciation of the tax agreement

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A few days ago, Denmark announced the denunciation of the tax agreement with Russia. The Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income and Property was signed in 1996 and was in force for 27 years. The tax treaty will officially end in early 2024.
The denunciation statement was published on the website of the Russian Ministry of Finance. Denunciation is a specially executed refusal of the state from the international treaty it has concluded, which must be provided for in the treaty. The denunciation procedure is carried out in accordance with the requirements prescribed in the contract.
In a notice published on the website, the Ministry of Finance explained what the cancellation of the agreement will affect:
• Source taxes on income on or after January 1, 2024;
• Property and other taxes in any tax year beginning on or after January 1, 2024.
The denunciation of the tax treaty would have a negative impact on income related taxes. The gap between tax benefits and mutual settlements will hit foreign companies that have not suspended business in Russia, and Russian companies operating abroad. Passive income will be taxed in both countries.