MOSCOW, February 24. /TASS/. Russia holds a tough position on revision of the double taxation agreement with the Netherlands, although the Kingdom opposes this, Prime Minister Mikhail Mishustin said on Wednesday.

 "The president has supported all our initiatives to introduce a tax rate of fifteen percent. We have settled the issue as regards the five main zones now and keep an eye on capital movement. The Cyprus issue has been settled to date, as well as that of Malta. The Netherlands balks so far at the 15% dividend tax rate. Our position is very tough, up to renunciation [of the agreement]," the prime minister said.

The existing tax agreement with Russia makes it possible to withdraw profit from Russia by paying the tax at the effective rate of 2-3%, while the relevant rate in the country is much higher - 15% on dividends and 20% on interest in respect of legal persons.

In late March 2020, Russian President Vladimir Putin ordered to set the tax rate at 15% on income in the form of dividends and interest transferred to accounts abroad. This requires revision of double taxation conventions with other countries. Putin cautioned Moscow would unilaterally withdraw from agreements with countries that would not accept its proposals.