The Russian Federation proposed to the Emirates to conclude an agreement in 2022, when large sanctions were introduced against it for the war in Ukraine.
The Russian Federation and the United Arab Emirates (UAE) are preparing to sign a double tax treaty that will impose a tax rate of 10% on income from dividends, interest and royalties. This was stated by the State Secretary of the Deputy Minister of Finance Alexei Sazanov in a commentary in a Russian propaganda publication. Vedomosti.
The document was pre-agreed, and its signing will take place in the first half of 2025, the Russian official assured.
Russia proposed to the Emirates to conclude an agreement in 2022, when large sanctions were imposed against it for the war in Ukraine, but until recently the authorities of the Middle Eastern state discussed the terms of the agreement, including the size of the tax rates at the source of passive income.
The Russian Ministry of Finance previously noted that the new agreement covers not only state companies and structures, but also private businesses and individuals.
At the same time, the Emirates is still included in the “black list” of offshore zones of the Russian Ministry of Finance. This list includes countries or individual territories that provide preferential tax regimes, but do not disclose or provide information when conducting financial transactions at the request of tax authorities from other countries.
The exclusion of the UAE from the “black list” will be a “really important consequence” of the conclusion of the new agreement, Russian lawyers hope.
After the imposition of sanctions, Russian businesses are actively moving their structures from Cyprus and other EU offshores to the UAE. According to Russian media, in 2022, about 700 Russian organizations registered a second legal entity in the Emirates, almost seven times more than in 2021.
We remind you that it has become more difficult for Russian citizens to obtain a visa to Cyprus due to stricter requirements introduced by the republic’s authorities.
Source: korrespondent
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