MOSCOW, January 31. The President of Russia Vladimir Putin signed the law on ratification of the agreement with China on avoidance of double taxation and prevention of evasion from taxation with respect to taxes on income. Also ratified a Protocol on amendments to the original agreement. Relevant document posted Sunday on the official portal of legal information.
The agreement was signed in October 2014, and the Protocol on amendments in may 2015. The signing of both documents was held in Moscow.
January 27 reported that the agreement was ratified by the Federation Council.
In the explanatory note to the law on ratification of the agreement States that it will promote further development of mutually beneficial cooperation between States and the attraction of mutual investments.
The document implies the creation of conditions under which individuals and legal entities from Russia and China will not be subjected to double taxation in both countries on the same income.
The agreement and the Protocol shall extend to the taxes levied from total income or specific items of income of the persons with the domicile, resident, place of management, place of registration in Russia or China.
As previously explained, the Deputy Minister of Finance Alexey Moiseev, the agreement contains provisions about the taxation of financial activities, income from real property, income from employment, income of artists and athletes and other types of income.
Moiseev said that the agreement will enter into force at the beginning of a new fiscal year, i.e. January 2017.
Between Russia and China since 1994 already had similar agreement for the avoidance of double taxation and prevention of evasion from taxation with respect to taxes on income, however, the parties decided to introduce a number of adjustments. Due to the large number of proposed changes, the parties came to the conclusion about expediency of the conclusion of the new agreement is the Protocol on introducing amendments to the applicable.