Cyprus says reaches agreement on taxation deal with Russia

ATHENS, Aug 10 (PRIME) -- Russia and Cyprus have agreed on amendments to an agreement on avoidance of double taxation, Cypriot Finance Minister Constantinos Petrides said on Monday in his Twitter account.

"Restoring confidence in economic relations between Russia and Cyprus, amendments to the agreement have been agreed upon with Deputy Prime Minister (of Russia Alexei) Overchuk. An important and mutually beneficial agreement," Petrides said following a round of negotiations between the countries being held in Moscow.

Russian President Vladimir Putin suggested in March imposing a 15% tax on dividend yield withdrawn to accounts in foreign jurisdictions, which would require adjustments in agreements with other countries on avoidance of double taxation. Russia will cancel such deals unilaterally if agreements on the matter with other countries are not reached.

Russia’s Finance Ministry earlier said it had started the procedure to cancel the agreement on avoidance of double taxation with Cyprus.

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