As of July 1, 2023, new Cabinet regulations No 333 “List of low-tax or tax-free countries and territories” are effective. Cabinet regulations have been expanded with new tax-free and low-tax countries and territories:
- the territory of the British Virgin Islands,
- Republic of Costa Rica,
- Republic of the Marshall Islands and
- The Russian Federation.
Please note that transactions with the mentioned countries may affect the application of taxes. As an example, Corporate income tax (CIT) tax of 20% must be withheld from all payments to persons located, established, or established in low-tax or no-tax countries or territories.
Please contact us in case you have any questions regarding application of taxes!