Withholding agents: Partial suspension of U.S. – Russia income tax treaty
Withholding agents: Partial suspension of U.S. – Russia income tax treaty
On June 21, 2024, the IRS issued Announcement 2024-261 notifying of the partial suspension of the United States – Russia income tax treaty.
The suspension will take effect both for taxes withheld at source and in respect of other taxes on August 16, 2024, and will continue until otherwise decided by the two governments.
Consequently, Qualified Intermediaries (“QIs”) are required to start withholding at the statutory 30% tax rate on payments of U.S. source income made to recipients that may have previously been granted with treaty benefits under the U.S. - Russia income tax treaty.
IRS Announcement 2024-26
The suspension will take effect both for taxes withheld at source and in respect of other taxes on August 16, 2024, and will continue until otherwise decided by the two governments.
Consequently, Qualified Intermediaries (“QIs”) are required to start withholding at the statutory 30% tax rate on payments of U.S. source income made to recipients that may have previously been granted with treaty benefits under the U.S. - Russia income tax treaty.
IRS Announcement 2024-26