Russian FM Provides Anti-Offshore Law Update

Russia’s Finance Minister, Anton Siluanov, has told President Vladimir Putin that a new bill to deter Russian tax residents from hiding income offshore is expected to raise about RUB30bn (USD844m) from overseas accounts in Cyprus and the Netherlands.

During a Government meeting on July 30, 2014, Siluanov explained that entrepreneurs are taking advantage of double taxation agreements (DTAs) to receive income from holdings offshore without being subject to tax. He said that the bill would ensure that entrepreneurs will only be able to take advantage of low or zero tax rates under DTAs once transfers are disclosed, and after it has been established whether taxes due in Russia have been paid.

He added that his ministry is currently in discussion with the business community, and that the bill will be completed by the end of August in time for the autumn session.