Russia excludes Malta from black list of offshore jurisdictions

MOSCOW, October 8. /TASS/. The Russian Finance Ministry has drafted a decree that will exclude Malta from the black list of offshore jurisdictions.

The decision followed the enactment of the convention between the governments of Russia and Malta of May 22, 2014 on the avoidance of dual taxation and prevention of tax evasion with regard to income tax.

There are 41 offshore jurisdictions in the black list.

In September, members of the Federation Council (upper house of the Russian parliament) and its chairperson, Valentina Matviyenko, sent a set of draft laws on de-offshorisation to the State Duma (lower house of parliament).

If adopted, they will penalise tax evasion with a prison term of up to six years.

In March, Irina Yarovaya, chair of the Duma Security and Anti-Corruption Committee, asked the Finance Ministry and the Central Bank to draw a black list of offshore jurisdictions.

She also suggested that Vnesheconombank, which is essentially a development corporation, should not issue loans to companies that are not registered in Russia.