YEREVAN, January 18. / ARKA /. Russia’s State Duma (lower chamber of parliament) has ratified today the Protocol to the Agreement between the governments of Russia and Armenia on the avoidance of double taxation of income and property, RIA Novosti reported.
The purpose of the agreement is to develop and strengthen economic, scientific, technical and cultural relations between the two countries, to eliminate double taxation of income and property, and prevent tax evasion and tax discrimination. The agreement applies, in particular, to corporate and individual income and property taxes.
The agreement also clarifies the term "permanent establishment" in order to apply it to the construction sites or assembly structures. The untaxed duration of such structures is reduced from 18 to 12 months in accordance with CIS standards.
The agreement also specifies the names of Russian taxes, taxation of interest income on commercial loans and so on.
The agreement clarifies the taxation procedure for remuneration received by residents of one state from employment in another state. It also explains ways to assist in the collection of taxes and the exchange of information between the competent authorities of Russia and Armenia. -0-