News: Russia and Austria launched the Protocol on the avoidance of double taxation

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Starting from June 21, 2019, the Russian Federation and Austria will introduce in their countries a regime of avoiding double taxation in the framework of the adopted Convention of 2000 and the Protocol signed to it of June 5, 2018. It will act on the capital and profits of individuals and legal entities that conduct business, financial activity or other relevant operations.

The previously ratified protocol by the Council of Federation of Russia and the Government was signed by Russian President Vladimir Putin. After that, the protocol from 2000 will become valid. Its separate positions will function from January 1 of the next year. Earlier, the Russian authorities were able to sign the protocol to the Convention only last year, and its entry into force was postponed. After the completion of all procedures, from June 21, 2019, the main provisions of the Convention between Austria and the Russian Federation will be valid.

Within the framework of this Convention and its accompanying Protocol, the Government explained the main essence of the adopted documents.

“Changes to the Convention are due to changed conditions of economic activity, changes in legislation on taxes and fees in both Russia and Austria, the development of bilateral economic relations and international trends in taxation, in particular, regarding information exchange and the fight against abuse.” said in an official statement of the Government of the Russian Federation.

According to the agreed rules, a single five per cent interest rate on dividends at the source of income is introduced between countries. Both Austria and the Russian Federation provide information on all transactions and activities of companies under this Convention, and automatic data exchange takes place between the relevant departments of the countries.

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