The Russian government submitted a bill to denounce the agreement to the lower chamber last month.
"If the Russian side submits a notification on agreement denunciation before 30 June 2021, it will be terminated on 1 January 2022", the explanatory note read.
At the same time, the Russian Finance Ministry said it would propose amending taxation deals with Hong Kong, Singapore, and Switzerland.
"We have three key jurisdictions left — Switzerland, Hong Kong, and Singapore. We will also propose amendments to the agreements. This will allow us to cover more than 90% of payments to transit jurisdictions and additionally replenish the treasury of Russia", Deputy Finance Minister Sazanov told lawmakers from the lower chamber of parliament.
The changes were announced in March 2020 after Russian President Vladimir Putin ordered to increase income tax on dividends and interest transferred to foreign accounts. This step required adjusting agreements with other countries to avoid double taxation. The head of state warned that Russia would unilaterally withdraw from agreements with countries that do not accept its proposals.
The decision has so far affected four countries — Cyprus, Malta, Luxembourg, and the Netherlands. Tax treaties with Malta, Cyprus, and Luxembourg have been amended, while the procedure for the revoking of the agreement with the Netherlands has been launched.