The EU countries are the new offshores for Russia

Russian Ministry of Finance has more than doubled the list of offshore zones: now it includes 91 states/territories instead of the previous 40. All the EU countries, as well as the USA, Great Britain, Switzerland, etc., have been added to the list. The changes come into force on July 1, 2023.

As a result, international transactions will become even more complicated, the subsidiaries of international companies will lose the benefits of being in the SME Register (if the offshore owns more than 49%), and the subsidiaries of Russian companies will be banned from zero rates on income from dividends or selling shares.

Moreover, all transactions with offshore jurisdictions, regardless of their volume, are considered as controlled transactions, i.e. require notifications to tax authorities. Bellerage experts can help with this task.

Further suspension of agreements on avoidance of double taxation is possible.