Russia Moving Forward with Plans to Suspend Beneficial Withholding Tax Rates Under Tax Treaties with Unfriendly Countries

The Russian Cabinet has reportedly submitted a proposal for the suspension of beneficial withholding tax rates for dividends and interest under Russia's tax treaty with "unfriendly" countries. The suspension would only affect withholding tax rates, while other treaty provisions would be unaffected. The treaties would not be terminated.

The Russian Ministry of Foreign Affairs first announced an initiative with the Ministry of Finance in March 2023 to suspend tax treaties with all countries th…