The General Financial Directorate released the information on the suspension of certain articles of double taxation avoidance treaty with Russia. In this information, the practical implications are explained in more detail and specific procedures are recommended.

Routine trade and financial relationships with Russia are subject to the following restraints in particular:

• When paying income to Russian tax residents, a special tax rate of 35% is not applied in the Czech Republic (inter alia, in view of the fact that the Russian Federation has not yet withdrawn from the Convention on Mutual Administrative Assistance in Tax Matters).
• For Czech tax residents, double taxation cannot be ruled out with income from Russia from September 29, 2023.
• For the period from August 11, 2023 to September 28, 2023, the Czech taxpayer can choose whether to treat Russia as a country with which the Czech Republic has concluded an agreement on the avoidance of double taxation of all types of income (as in the period before August 10, 2023), or, on the contrary, as a country with which such a treaty is not implemented, for the purpose of eliminating or mitigating the effects of double taxation.

Please note that the link leads to Czech version, unfortunately, English version is not available.