Sep 9, 2020

Russia and Cyprus sign amended double taxation treaty

Russia and Cyprus sign amended double taxation treaty

During their official visit to Cyprus, Minister of Foreign Affairs of Russia, Sergey Lavrov, and Deputy Minister of Finance of Russia, Alexey Sazanov, have signed a protocol amending the Double Taxation Treaty between Russia and Cyprus on Tuesday, September 8th 2020. On behalf of Cyprus, the protocol was signed by Finance Minister Constantinos Petrides. The adjustments to Russian Double Tax Treaties are a result of the measures implemented in Russia earlier this year, in the wake of the coronavirus pandemic.

“Signing the protocol ensures continuation of the implementation of the double taxation avoidance treaty, which undoubtedly is beneficial for both sides since it encourages investment, trade across all sectors of the economy, but also the job market,” Mr Petrides said.

The amendments ensure that the tax levied on dividends and interest will not exceed 15% of the total amount of dividends, and among other things, the exemption from a 15% withholding tax on dividends for regulated entities, such as pension funds and insurance companies, as well as listed companies.

In addition, interest payments from corporate and government bonds, including Eurobonds, are excluded from the 15% withholding tax in the new Cyprus-Russia Double Tax Treaty.

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