Finland's President has formally signed legislation suspending the implementing Act for its 1996 income tax treaty with Russia, effective from 1 July 2026, completing the suspension after Russia partially terminated the agreement in August 2023.
Finland’s President has signed the law suspending the implementing Act for the 1996 tax treaty with Russia on 29 May 2026, according to an update from the Finnish government.
As previously reported, Finland had already notified Russia that the treaty would be suspended with effect from 1 July 2026. Russia has suspended the application of certain treaty provisions since August 2023, while Finland had continued to apply the treaty unilaterally.
The tax treaty between Finland and Russia, which entered into force in 1996 and was amended in 2002, was partially suspended by Russia in August 2023 in response to EU sanctions. Although the suspension may increase the risk of double taxation for some individuals, the broader economic impact is expected to be limited given the sharp decline in trade between the two countries.
Finland’s suspension, effective from 1 July 2026, results in the complete suspension of the treaty.
Earlier, Finland’s government approved a proposal to suspend the domestic implementing act of the Finland–Russia Income Tax Treaty (1996), as amended on 16 April 2026.
