After the decision to denounce the agreement between Russia and the Netherlands on the avoidance of double taxation, Gazprom is analyzing the issue of re-registering its own holdings in the Netherlands under Russian jurisdiction. This was announced by the deputy chairman of the board of the company Famil Sadigov at a briefing for journalists.
According to him, the possibilities of special administrative regions (SAR) can be used to re-register foreign holdings. “Our task is to use our ATS in Kaliningrad or on about. Russian. We are considering both options, there will be a transfer of our Dutch companies to these jurisdictions, “Sadigov said.
“We are not going to pay double tax,” he added.
Sadigov also clarified that the company plans to develop a mechanism for re-registering legal entities by the end of this year. At the same time, the head of the tax policy department, Karen Ohanyan, added that the company was preparing for this step, the management of Gazprom intends to “prevent financial losses.”
The largest Gazprom structures registered in the Netherlands are South Stream Transport BV, Gazprom Finance BV, Gazprom EP International BV, Gazprom International Projects BV and Blue Stream Pipeline BV.
On June 8, the Russian Foreign Ministry notified the Netherlands about the denunciation of the agreement on the avoidance of double taxation and the prevention of tax evasion on income and property. The document will expire on January 1, 2022.
Russian President Vladimir Putin signed the law on denunciation of the agreement on May 26.
The decision to denounce the agreement came after Russia held several unsuccessful negotiations with the Netherlands Ministry of Finance to increase the tax to 15% on dividends and interest. The Russian Federation offered the Netherlands a scheme previously agreed upon with Cyprus, Luxembourg and Malta. However, the negotiations were unsuccessful.
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