The implementation of the Agreement and Protocol hereto will have a positive impact on attracting capital from Asian financial markets to Russia.
Reference
The directive was submitted by the Ministry of Finance. The Draft Agreement between the Governments of Russia and the Special Administrative District of the People’s Republic of China, Hong Kong, for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Protocol Hereto (hereinafter referred to as “Agreement and Protocol”) were prepared to ensure conditions whereby legal entities and individuals will not pay taxes twice on the same income in their own country and the partner country.
The Draft Agreement regulates issues related to taxing profit from business activity, income from the use of property, sea and air transit, passive income (dividends, interest and royalties), and personal income.
The Draft Agreement and Protocol provide for the exchange of information between the relevant agencies of the contracting parties.
The Draft Agreement and Protocol are not in conflict with the Treaty on the Eurasian Economic Union of 29 May 2014, or the provisions of other international treaties of the Russian Federation.
In keeping with the Federal Law on International Treaties of the Russian Federation, after signing, the Agreement and Protocol are subject to ratification, as they contain rules that differ from those provided for by Russian law.
The implementation of the Agreement and Protocol will have a positive impact on attracting capital from Asian financial markets to Russia.
The documents were considered and approved at a Government meeting on 3 December 2015.