As noted, the goal of the initiative is “to establish a withholding tax regime at the rates provided for by the Tax Code of the Russian Federation for income in the form of dividends and interest paid, in fact, to Russian beneficiaries through the jurisdiction in which companies that do not independently dispose of these incomes are located and through that such incomes are in transit ”.

The planned date of entry into force is March 2021.

In September, Finance Minister Anton Siluanov said that negotiations on revising the treaty between the two countries were difficult.

In late March, President Vladimir Putin ordered an increase in the tax on the transfer of dividends and interest to foreign accounts to 15% from next year.

This requires adjustments to double tax treaties.