The UK government has asked Russia to revoke the suspension of the 1994 UK-Russia tax treaty.
Last week, Russia notified the UK government that it has suspended the provisions of the tax treaty vide Presidential decree dated August 8, 2023.
The government said that the tax treaty does not permit this kind if a unilateral action.
“The government views this action with utmost seriousness,” it said.
“Russia has suspended substantially all of the UK-Russia Convention, including treatment of dividends, interest, royalties, capital gains, business profits, employment income and pensions, together with protection against discrimination. The provision for elimination of double taxation has not been fully suspended,” the government noted.
“The suspension likely means that Russia will not honour any agreed limits on what it may tax at source, and that only limited relief from double taxation will be available in Russia.”
The government said it considers the tax treaty to remain in force and will continue to comply with the provisions of the tax treaty.
The tax treaty is in effect in the UK since 1988.