The EEC is working with the parties on tax barriers in mutual trade of the EAEU

At the meeting of the Advisory Committee, the parties considered the problematic issues in the field of taxation and tax barriers, arising in the implementation of the mutual trade and rendering services in the framework of the Eurasian Economic Union.
Currently, the Kazakhstan and Russian parties signed an agreement in the form of an exchange of notes about the recognition of the official documents confirming tax residence. We are talking about documents issued by the state authorities of the Republic of Kazakhstan and the Russian Federation in the framework of the Convention for the avoidance of double taxation and prevention of tax evasion on income and capital. After the Kazakhstan party has completed ratifying the agreement, this barrier will be eliminated.
During the meeting, the question of VAT exemption for products manufactured from domestic agricultural raw materials by the Kyrgyz enterprises of food and processing industry in the domestic market was considered. It was decided to request that the Kyrgyz party consider changes to the tax laws of the country, envisaging distribution of benefits for agricultural commodities of all the Member States.
Also, it was decided to ask the Kazakhstan party to consider making changes to the tax laws of the country with respect to the non-use of the rent tax for coal exported from its territory to the other Member States.
On the question of VAT exemption for the cost of scrap and waste of ferrous and non-ferrous metals imported into the Russian Federation from the Member States, it was decided to request that the parties submit to the EEC their proposals on amendment of the wording of Articles 71, 72 of the Treaty on the EAEU, which will correct the current situation.
The members of the Advisory Committee paid particular attention to the consideration of issues of information exchange in the framework of the Eurasian Economic Union. The representatives of the parties reported on the results of domestic approval of the draft Protocol on the exchange of electronic information between the tax authorities of the EAEU Member States for tax administration. Based on the results of the domestic approval, the parties are planning to hold an approval meeting with the participation of authorized government bodies of the Union countries before the end of this year.
The participants of the meeting adopted recommendations on exchange of information for tax purposes between the tax authorities of the Member States of the Eurasian Economic Union - on request and on their own initiative (spontaneously). The recommendations will be implemented from January 1, 2017.
The parties also agreed to consider the possibility of improving the system of VAT taxation in mutual trade with the application of information technologies and the expansion of interdepartmental information interaction in the Eurasian Union between tax and customs authorities, as well as central and national banks on compliance in tax legislation.
In order to improve the collection of taxes on income and on property in the Member States and tax administration, experts of the parties proposed the establishment of a working group to exchange experience in the area of application of Agreements on avoidance of double taxation and tax evasion on income and on capital by the EAEU Member States. The participants of the meeting discussed the implementation of the OECD Plan to combat Base Erosion and Profit Shifting (BEPS). Particular attention was paid to the implementation of individual points of the Plan in the law enforcement practice of the Member States. This work is aimed at improving the tax administration.
The meeting of the Advisory Committee was attended by heads and experts of the authorized government bodies in charge of tax policy issues of the Eurasian Economic Union.
Press-release at the official Eurasian Economic Commission web-site