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2024-129 | June 18, 2024
2
The U.S. Internal Revenue Service (IRS) subsequently, on December 28, 2023, released Notice 2024-11
3
updating the list of treaties that meet the requirements of section 1(h)(11) with respect to “qualified dividends”
to remove the treaty with Russia (under which the exchange of information program had been paused),
effective with for dividends paid on or after January 1, 2023.
KPMG INSIGHTS
U.S. withholding agents will have approximately two months to update their systems to reflect the new
withholding tax rates that will be effective beginning August 16, 2024.
FOOTNOTES:
1 See U.S. Department of the Treasury, Press Release, "United States’ Notification of Suspension, By Mutual
Agreement, of the 1992 Tax Convention with Russia" (June 17, 2024).
2 As had been reported, with Russia's Decree No. 585 (gazetted on August 8, 2023), the Russian government
partially suspended most provisions of 38 effective tax treaties Russia signed with Albania, Australia, Canada,
Iceland, Japan, Montenegro, New Zealand, North Macedonia, Norway, Singapore, South Korea, Switzerland, the
United States, the United Kingdom, and European Union member states. See S. Goel and A. Goel, "Russia’s
Questionable Unilateral Suspension of Tax Treaties," Tax Notes (September 25, 2023).
3 See IRS Notice 2024-11
.
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RELATED RESOURCE
For related coverage, see "U.S. Treasury announces suspension, by mutual agreement, of the Russia income
tax treaty," in TaxNewsFlash-United States, a publication of the KPMG International member firm in the
United States.