Russia lists nonfriendly Western countries as offshore

With effect from July 1, 2023, the Ministry of Finance of the Russian Federation by its decree expands the list of offshore zones (states and territories providing preferential tax treatment and/or not providing for the disclosure and provision of information when carrying out financial transactions).

The new list is almost double the previous one due to unfriendly Western countries list (foreign states and territories committing unfriendly acts against Russia, Russian companies and citizens) and now includes, among others, the territories of the European Union, Australia, Canada, Japan, New Zealand, Singapore, South Korea, Switzerland, Taiwan, UK and USA.

This list was a mirror response to Russia’s inclusion in the “black list” of states that do not cooperate with the EU on tax issues, and its extension could have further harmful effects on large and medium-sized businesses (lead to revision of the practice of realization of double taxation agreements, additional costs for companies registered abroad with Russian assets, etc.).