AO UniCredit Bank
Summary:
Following failed negotiations, the President of the Russian Federation signed the denouncement of the DTT between Russia and the Netherlands
Mon, 31/05/2021
The President of the Russian Federation signed the decree on denunciation of the DTT with the Netherlands on May 26, 2021. The DTT will terminate on January 1, 2022 if the official notification on denunciation is sent by the Russian Federation to the other party until June 30, 2021. The Russian Ministry of Finance proposed to amend the DTT by increasing the tax rate to 15% which was not agreed by the Netherlands, hence the negotiation failed.
Impact on investors: When the DTT termination procedures are finalized, dividend and coupon payments from Russian issuers will be subject to statutory tax rates if the disclosed actual recipient of the respective income is a tax resident of the Netherlands.