TOKYO, Aug 9 Japanese government regrets Russia's decision to suspend tax agreements with a number of countries and sent a protest through diplomatic channels, demanding the abolition of innovations, Hirokazu Matsuno, Secretary General of the Cabinet of Ministers, said at a press conference.
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"It is extremely unfortunate that such unfair measures have been taken unilaterally, which may be unfavorable for Japanese citizens and companies. Today we sent a protest to the Russian side through diplomatic channels demanding the cancellation of this decision,” he said.
It became known yesterday that Vladimir Putin signed a decree on the suspension of certain clauses of tax treaties with 38 unfriendly countries, including Japan is also included.
The Decree suspends the main provisions of the tax treaties that regulate the taxation of movable and immovable property, dividends, interest, income from services and copyrights, royalties and income from employment, as well as the taxation of capital .
In addition, articles relating to tax benefits are suspended, as well as non-discriminatory norms, according to which taxpayers from countries participating in the agreements should not pay more burdensome taxes than local ones.
At the same time, the head of state left in force the norms of agreements on the elimination of double taxation, thus, companies registered in these countries will still be able to set off in Russia the amount of income tax paid abroad.
As explained in the decree, the decision was made «based on the need taking urgent measures in connection with the commission by a number of foreign states of unfriendly actions against the Russian Federation, its citizens and legal entities».