Taxation of income of tax non-residents from international traffic in Russia
https://doi.org/10.52468/2542-1514.2025.9(3).84-93
Abstract
The purpose of the research. The objective of this research is to define what international traffic for purposes of taxation is, and how Russia taxes respective income of non-residents and what changes were caused by the suspension of 38 Russian double tax treaties (DTTs).
Methodology. The research is based on the analysis of national legislation and double tax treaties of Russia, as well as world-renown model tax conventions. The Russia case law on application of double tax treaties and tax legislation is also in the scope of the research.
Main results of the research. The study allowed us to identify differences in approaches to the definition of international traffic for tax purposes at the levels of tax legislation and DTTs. Provisions of Russian DTTs on taxation of income from international traffic in the source state are analyzed and compared with existing model conventions. Changes in the legal landscape and problems of case law after the suspension of some Russian DTTs in 2023
are outlined.
Conclusion. There is no single concept of “international traffic” in Russian tax law - the approaches of legislation and DTTs differ, what can be explained by the purposes for which the term is used. This situation cannot be welcomed, especially in view of the existence of private law approaches to the understanding of the term. The treaty practice of Russia on taxation of profits from international traffic partly deviates from OECD and UN models due to peculiarities of the state tax policy. Suspension of DTTs with unfriendly states in 2023 resulted in increase of the tax burden on non-residents and Russian withholding agents with respect to income from international traffic, despite the existence of alternative international treaties with tax benefits and certain amendments to tax legislation. Key problems are outlined, including those requiring legislative solutions.
About the Author
E. V. Kilinkarova
St. Petersburg University
Russian Federation
Russian Federation
Elena V. Kilinkarova, PhD in Law, Associate Professor; Associate Professor at the Department
Department of Administrative and Financial Law
199034; 7/9, Universitetskaya nab.; St. Petersburg
ResearcherID: J-7523-2013; Scopus AuthorID: 57219343210; AuthorID: 508242
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Review
For citations:
Kilinkarova E.V. Taxation of income of tax non-residents from international traffic in Russia. Law Enforcement Review. 2025;9(3):84-93. https://doi.org/10.52468/2542-1514.2025.9(3).84-93
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