Apr 22, 2020
Webinar 24th April 2020: Upcoming changes in the Russian DTTs
Friday at 11:00 am (GMT+3)
To participate free of charge, please follow the link to register:
George O. Tsamourlidis, Head of Tax and Advisory, Senior Audit Manager
In the first official statement since the beginning of the coronavirus COVID-19 pandemic, Russian President Vladimir Putin addressed the nation on 25th March 2020, sending a shock wave through the business community with an announcement that a new tax rate, increased to 15%, will be charged on interest and dividends to recipients in ‘conduit’ jurisdictions (i.e. jurisdictions of intermediaries between the dividend/interest payer and recipient).
Though it was speculated that it will take time to feel the effects of the proposed DTTs amendments, Cyprus received the first official letter within a week, followed by Luxembourg and Malta.
What exactly is mentioned in the proposal and are there any exemptions to the new amendments?
With a timeframe in place and a very tight schedule to comply with the amendments, business owners are called upon to assess the impact and evaluate their options on the way forward.
Is there a way out this time? With a few alternatives available, everything will depend on the final agreements and the jurisdictions involved.
Russian Ministry of Finance and Ministry of Foreign Affairs have until 24th April 2020 to prepare a list of any other countries with which similar tax treaty changes may be considered.
For more information on the COVID-19 measures in Russia and how these measures can affect you, please contact us on [email protected]