Russian Agreements 2012

15.01.2013

According to the policy of returning capital back to Russia, attracting foreign investments in Russia and relying on the slogan that was put forward by Vladimir Putin “It is enough to feed offshores”, Russia actively concludes DTAs and Agreements of tax information exchange. These agreements generally pursue the goals of creating conditions under which legal entities and individuals of each of the contracting states do not pay taxes twice with the same type of income in both countries. Also such agreements often contain provisions that the competent authorities have agreed the parties should facilitate the exchange of information that is important for the administration and application of domestic laws of the Contracting Parties concerning taxes, which are provided by these agreements.

At the end of 2012 we can summarize all the actions. Russia has signed, ratified and changed a number of such agreements, in particular:

1. 09.11.2012 the Protocol to the Agreement on Avoidance of Double Taxation between Russia and Switzerland entered into force, it was signed on September 24, 2012 in Washington. It came into effect from 1 January 2013.

2. 02.10.2012 was ratified DTA agreement and the agreement of prevention of fiscal evasion with respect to taxes on income and capital between Russia and Latvia, signed on 20 December 2010 in Moscow.

3. 09.11.2012 DTA Agreement between Russia and Switzerland entered into force, signed on September 24, 2012 in Washington. It came into effect from 1 January 2013.

4. 02.10.2012 the DTA Agreement with respect to taxes on income and capital between Russia and Argentina was ratified, signed in Buenos Aires October 10, 2001.

5. 03.05.2012 Agreement on the Promotion and Reciprocal Protection of Investments between the Government of the Russian Federation and the Republic of Singapore was ratified, signed in Singapore September 27, 2010

6. 28.02.2012 the Protocol amending the DTA Agreement between the Government of the Russian Federation and the Government of the Republic of Cyprus from December 5, 1998 was ratified, signed in Nicosia, October 7, 2010.

Expert’s opinion

Russia is an amazing country. Longtime slogan "Fight of offshore companies" has long ceased to be relevant. It is the main inflow into the country thought foreign companies

Entered into DTA agreements added the weight and the status to Russia. So we can only be happy for such a "fruitful" year.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)