The Finance Minister of Cyprus Constantinos Petrides said that the new Russian-Cypriot agreement on avoidance of double taxation is important and beneficial for both parties.
“Amendment in double taxation agreement was agreed today by Deputy Prime Minister (Minister of Russia Alexei. — RT) A. Overchuk. This is an important and mutually beneficial agreement”, — he wrote in his Twitter.
Cyprus Finance Ministry in a statement also expressed satisfaction with the achievement with Russia agreements in the tax agreement.
“The Russian side requested to amend two key elements of the agreement, namely to increase the income tax withheld from dividends and interest to 15%, respectively,” — said the Cypriot Ministry of Finance.
At the same time, as noted, Cyprus has achieved reductions of specified withholding tax to 0% or 5% from pension funds and insurance companies, as well as keeping the zero tax on royalties.
Previously, the Finance Ministry of Russia reported that the ratification of a tax Treaty with Cyprus should be held before the end of 2020, it will enter into force on 1 January 2021.
3 August, Russia declared the beginning of procedure of denunciation of the agreement on the avoidance of double taxation with Cyprus.
In March the President of Russia Vladimir Putin said that all payments of income, interest and dividends leaving abroad in an offshore jurisdiction, should be subject to adequate tax — not less than 15%, and instructed to adjust agreements with some countries.