In order to avoid double taxation , conclude special intergovernmental agreements.They generally apply to taxes on income, capital or property.This Agreement shall not affect the problem of indirect tax , and does not apply to taxes such as value-added or sales at the taxes that reduce the financial profitability (which turnover tax and advertising, as well as other taxes includedin expenses).
main international agreements to avoid double taxation grouped as follows:
- Agreement with respect to taxes on income and capital;
- Agreement in respect of taxes on property and income;
- Agreement with respect to taxes and social contributions to so
cial security;
- Agreement in the field of transport.
In respect of other taxes to foreign countries that are not covered by the agreements, which are aimed at avoiding double tax (customs duties, various municipal taxes, indirect taxes), the only thing that can make a separate state forown physical and legal entities - is to provide them with a special national treatment or MFN.
National treatment is used most widely.It implies equality of subjects of national and foreign law in the field of taxation .This mode is manifested in two aspects: in the tax status of the subjects of the foreign law and the more important elements of individual tax liabilities.
In that case, the taxpayer will receive a confirmation of the status of a resident in Russia, it will be applied to modes income tax only our state.At the same time the tax laws of another country with which the agreement was concluded for the avoidance of double taxation , does not apply to any resident of the Russian Federation.