Finland will end its unilateral application of a decades-old tax treaty with Russia from 1 July, after Moscow suspended parts of the agreement last year in response to EU sanctions over the Ukraine war.
The Finnish government had decided to suspend its income tax treaty with Russia, effective 1 July 2026, following Russia’s partial withdrawal from the agreement in August 2023.
The announcement was made in a press release issued on 12 March 2026.
Finland and Russia signed the tax treaty in 1996, with updates in 2002, designed to prevent double taxation and tax evasion. Despite Russia suspending certain provisions in August 2023 as retaliation for EU economic sanctions, Finland continued applying the treaty unilaterally until now.
The suspension is anticipated to have minimal economic consequences, as trade between the two nations has dropped substantially since Russia invaded Ukraine. The government acknowledges that some individuals may face double taxation in specific situations.
A formal proposal will be submitted to the President of the Republic for approval. Since the treaty was enacted through legislation, a separate government proposal is required to legally suspend its application. The draft will be circulated for public consultation before proceeding.
