The State Duma supported the denunciation of the agreement with Latvia on the avoidance of double taxation

The State Duma of the Russian Federation voted to denounce the agreement between the governments of Russia and Latvia on the avoidance of double taxation. Interfax reported this.

The denunciation bill was introduced into parliament in December. Now it must be approved by the Federation Council and President Vladimir Putin.

In May 2022, Latvia notified Russia of the suspension of the agreement, citing Russia’s violation of international law as the reason for this decision and demanding the withdrawal of troops from Ukraine. In response, Russia also suspended the document in September.

“Due to the fact that the Latvian side’s return to fulfilling its obligations under the agreement seems unlikely, the agreement is subject to denunciation,” says the explanatory note to the bill.

The agreement avoids a situation where taxes on income (profits from business activities, income from real estate, income from employment, income of artists and athletes) have to be paid in two countries.

The document was signed in 2010. If Russia sends a notice of denunciation of the agreement before June 30, 2023, its effect will cease on January 1, 2024.

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