The double tax treaty between Denmark and Russia has been in force since 1996. Now the Danish government has begun consultations to end it. Such a bill was introduced in Denmark on April 20, 2023. The decision is due to the fact that Russia was blacklisted by the EU.
What does it mean?
The inclusion of an aggressor country on the EU “black list” immediately limits its cooperation with international financial organizations.
As of January 30, 2023, there were 12 countries and territories on the EU “black list”: American Samoa, Anguilla, Bahamas, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, Turks and Caicos, US Virgin Islands and Vanuatu, and on February 14, 2023, the Council of the European Union updated the blacklist to include the British Virgin Islands, Costa Rica, the Marshall Islands and Russia.
The agreement is expected to end in 2024. Tax Minister Jeppe Bruus commented:
“This is contrary to the general considerations that Denmark usually pursues when concluding double tax treaties. Namely, that Denmark has an agreement with a country on the black list of EU tax havens. Therefore, after a specific assessment, the Government decided to terminate the agreement. Breaking the agreement with Russia ensures that Danish safeguards can be implemented against all countries that are on the EU blacklist.”