The base is the total amount of income, assets, assets, assets, consumption, transactions or other economic activities that are taxed by a tax authority. A narrow tax base is not neutral and ineffective. A broad tax base reduces the costs of tax administration and allows for more revenue at lower rates. Look at tax rates, the latest tax news and information on double taxation agreements with our specialized online resources, guides and useful links. The POP is now in effect to resolve disputes over the taxation of the individual`s income, profits and assets under the current TTT. Agreement between the Government of the Russian Federation and the Government of the Republic of Albania to avoid double taxation on income and capital However, several countries have tax agreements with Russia that are not subject to these interest payments (or have a very low withholding tax rate), eliminating the potential for double taxation. However, Russia is in the process of amending some of these treaties. Elimination of double taxation: Russia has chosen the method of tax deduction as it is now (the same as in most TDRs with Russia). The Russian Ministry of Finance estimates that 16 billion euros ($17.92 billion) of revenue generated in Russia in 2018 was diverted to Cyprus and 21.9 billion euros ($24.52 billion) in 2019. As a result, the loss of Russian tax revenue due to double tax relief is considerable.
As a general rule, contracts guarantee non-discriminatory tax treatment and provide for cooperation between the tax authorities of the signatory states. The main purpose of these contracts is to protect the investor from double taxation for the same income in two different countries and to prevent tax discrimination against a signatory country abroad. In particular, interest, royalties, pensions and dividends are subject to these double taxation agreements. Most Russian double taxation conventions provide for the following mechanisms to avoid double taxation: most Russian double taxation conventions contain provisions on the following elements that constitute taxable income, such as: cross-border taxation is a complex area of tax policy. If one company is headquartered in one country, offices in another and sales in another, the laws of the three countries must be taken into account. The tax policies of different countries often overlap, so that revenues from sales in one country can be taxed twice – first, in the country where the sale is made by a local office, and second, if those revenues are paid in the form of dividends to the parent company in another country. There are two ways to benefit from double taxation exemptions: without tax deduction or with a deduction from a reduced rate, as agreed in the double taxation agreement. As a result of the Organisation for Economic Co-operation and Development Convention, Russia has included clauses in its agreements on the exchange of tax information. One of the most important provisions of the Russian double taxation conventions refers to stable institutions that can take the form: double taxation agreement list of the current double taxation conventions provided by the Federal Tax Office of the Russian Federation. Since 2002, when the new Income Tax Act came into force, it has changed the tax regime of foreign companies operating in Russia.