Russian Finance Ministry has rejected UK’s request to withdraw the partial suspension of the Russia-UK tax treaty.
Earlier this month, Russia notified the UK government that it has partially suspended the provisions of the tax treaty vide Presidential decree dated August 8, 2023. Subsequently, the UK government asked Russia to revoke the suspension of the tax treaty stating that the tax treaty does not permit this kind if a unilateral action.
Rejecting UK’s request, the Russian Finance Ministry, on August 19, said that the partial suspension of tax treaties with “unfriendly” countries shall continue until Russia’s rights are restored.
The Finance Ministry said: “Western countries have been unilaterally introducing economic restrictive measures against Russia since 2022. In February this year, Russia was included by the European Union in the list of non-cooperative jurisdictions for tax purposes, the so-called EU blacklist.”
“At the same time, non-compliance with certain provisions of tax treaties by unfriendly countries is noted,” it added.
The Finance Ministry said that Russia cannot apply the tax treaty provisions under the circumstances. “The Vienna Convention on the Law of Treaties allows such a form as the suspension of agreements, including their individual provisions, if the rights of another country have been violated,” the Ministry noted.