Russia offers new incentives to Chinese lenders
Via MK. ru. Translation by RI's Alina Belyanina:
The Russian government has approved the amendments drafts to the Russian-Chinese intergovernmental agreement on avoidance the double taxation. The corresponding decree was posted on the government website on Wednesday.
The protocol withdraws several provisions on taxation from the agreement. The former edition assumed that resulting interest income of Chinese creditors in Russia may be taxed in China, and not more than the 5 % rate in Russia itself (similar for interest income of Russian lenders in China). Under the new rules, Chinese lenders will pay tax in China only (similar to Russian lenders will only pay tax in Russia on Chinese interest income).
"In terms of sanctions imposed on Russia by the European Union, the United States and other countries, the signing of the protocol will allow to reorient Russian borrowers to Asian capital markets, reducing the cost of attracting and servicing loans," said the Russian government.
Now the Russian Ministry of Finance will have to sign a protocol on changes in the agreement with the Chinese side. Then it must be ratified by the parliaments of both countries.