Finland ends unilateral application of the 1996 income tax agreement following Russia's partial suspension in August 2023, with full termination scheduled for 1 July 2026.
Finland has formally published its decision to suspend the 1996 income tax treaty with Russia, with the suspension set to take effect on 1 July 2026.
The decision was published in Finland’s Official Gazette on 2 April 2026, following an announcement by the Ministry of Finance on 31 March 2026.
The Finnish president approved the suspension on 13 March 2026, and Russia acknowledged receiving official notification on 26 March 2026.
The bilateral relationship had already deteriorated significantly before Finland’s decision. Russia began suspending certain treaty provisions in August 2023, while Finland continued applying the agreement unilaterally until now. The complete suspension by Finland marks the end of this one-sided application.
Finland is simultaneously working to suspend its domestic legislation that implements the tax treaty. This parallel domestic process aims to ensure Finnish law aligns with the treaty suspension, with both measures expected to become effective on the same date: 1 July 2026.
The suspension reflects extraordinary circumstances affecting bilateral relations between the two countries.
Finland and Russia’s tax treaty, in place since 1996 and updated in 2002, was partially suspended by Russia in August 2023 due to EU sanctions. Despite some risk of double taxation for individuals, the overall economic impact is expected to be minimal given the sharp decline in bilateral trade.
