On Wednesday the Russian State Duma /the lower chamber of the parliament/ ratified agreements between the Russian Federation and the governments of the Syrian Arab Republic, New Zealand and the Republic of Island to eliminate double taxation and prevent income tax evasion.
Russian Deputy Finance Minister Mikhail Motorin pointed out that the agreement was aimed at creating conditions saving both legal entities and individuals of the countries participating in the agreement from paying double taxes on the same type of income or property in their country and the partner country. This decision allows these countries to attract foreign investments and ensure conditions eliminating double taxation of enterprises, organisations and citizens on mutually favourable terms, Motorin pointed out.
The agreements envisage that entrepreneurs of one partner country doing business in the other partner country via permanent representative offices will be taxed locally. Besides, the agreements with New Zealand and Island envisage that building and assembly jobs will be taxed locally only after 12 months' realisation, while the agreement with Syria reduces this term to 6 months.
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