The Russian grocery retail company X5 Retail Group, registered in the Netherlands, has no plans to change its jurisdiction due to the denunciation of the double taxation treaty with that country. This was stated in an interview to Interfax by the CEO of X5 Igor Shekhterman.
“When we consider being in a particular jurisdiction, we proceed not from how the legislation has changed, but from what business needs. At the moment, the group is registered in the Netherlands, and we are not yet considering moving to other jurisdictions, ”said Mr. Shekhterman on the sidelines of the St. Petersburg International Economic Forum.
In March 2020, Russian President Vladimir Putin ordered a 15% tax on income in the form of dividends and interest transferred to offshore accounts. The changes affected four European countries. Cyprus, Malta, Luxembourg agreed to revise the tax agreements, however, it was not possible to agree with the Netherlands on revising the agreement. On May 26, Mr Putin signed a law denouncing the agreement between Russia and the Netherlands to avoid double taxation.
For more details on how the Russian government approved the denunciation of the tax agreement with the Netherlands, see the article by Kommersant, “The Dutch are being torn apart.”