Today, February 17, at the plenary session of the State Duma, the issue of the draft federal law “On ratification of the Protocol on Amendments to the Convention between the Government of the Russian Federation and the Government of Malta for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income from 24 April 2013 “.
State Secretary – Deputy Minister of Finance of the Russian Federation Alexey Sazanov made a report on this issue.
State Duma deputy, member of the International Affairs Committee Yuri Levitsky made a co-report.
In his speech, he said: “The International Affairs Committee considered at its meeting the draft federal law“ On the ratification of the Protocol on Amendments to the Convention between the Government of the Russian Federation and the Government of Malta for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income from April 24, 2013 ”, submitted for consideration to the State Duma by the Government of the Russian Federation, and supports its adoption.
This Protocol is aimed at improving the taxation system in the changed economic situation in the Russian Federation in order to minimize the negative consequences for the Russian economy regarding the taxation of payments made from the Russian Federation abroad.
As a result of the agreements reached between Russia and Malta, the signed Protocol increases the withholding tax rate on income in the form of dividends and interest to 15%, with some exceptions for institutional investments, to which a 5% tax rate will apply.
The Protocol is subject to ratification in accordance with the Federal Law “On International Treaties of the Russian Federation” due to the fact that it contains rules other than those provided for by the legislation of the Russian Federation.
According to the Russian Foreign Ministry, the Maltese Party has completed all domestic procedures required for the entry into force of the Protocol.
The State Duma Committee on International Affairs believes that the Protocol fully meets the interests of the Russian Federation. Ratification of the Protocol will help to increase the effectiveness of bilateral cooperation in the tax area, which, in turn, will serve to increase revenues to the budget of the Russian Federation.
The Legal Department of the Office of the State Duma has no comments on this draft federal law.
The Committee on International Affairs recommends that the State Duma adopt this Federal Law. ”
Following the discussion, the State Duma adopted the aforementioned Federal Law.