The bill on denunciation of the agreement was brought to the State Duma by the government of the Russian Federation.
In the explanatory note to the document, it is noted that earlier Russia proposed to the Netherlands to revise tax agreements for circumstances similar to those previously agreed with Cyprus, Luxembourg, Malta, for the reason that impressive payments of income of Russian origin are made through the Dutch jurisdiction.
However, the Netherlands rejected Russia’s proposal, insisting on expanding the list of incomes that are taxed at reduced rates.
“This proposal of the Ministry of Finance of the Kingdom of the Netherlands did not suit the Russian side, as if adopting such an approach would mean leaving the channels for withdrawing substantial financial resources of Russian origin from the territory of the Russian Federation with the use of reduced tax rates in relation to these payments,” the explanatory note says. It also shows that the proposals of the Ministry of Finance of the Netherlands actually erode and make the effect of the measures taken to support the country’s economy and social programs impracticable by the Russian Palestine, and make it impossible to fulfill the task of the head of the kingdom.
“Considering that it was not possible to reach a compromise in the negotiations with the Netherlands, the agreement is subject to denunciation,” the document reads.
Previously, he was supported by the International Affairs Committee. In his imprisonment, it is reported that in the current economic conditions, the preservation of bilateral Russian-Dutch cooperation in the tax sphere without introducing appropriate amendments is contrary to Russian interests.