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Denunciation of the DTT with Malta

Yesterday the Russian Ministry of Finance published on the government’s portal information that the development and discussion has started with regard to a draft law to denounce the Convention between Russian Government and Government of Malta for the avoidance of double taxation from 1 January 2021. The description of the daft law contains neither the text of the draft law nor the explanatory note. The date when the public consultations will be completed is stated as 8 July.

It is unclear how the Government is going to terminate the DTT from the specified date: according to article 29 of the DTT a termination notice with respect to the DTT should be submitted to the other party no later than 30 June. Apparently, the above information has been published with a view to putting pressure on Malta and inducing it to engage in negotiations to revise the DTT.

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