Ministry to adjust bill on special tax benefits after Cyprus deal

MOSCOW, Aug 25 (PRIME) -- The Finance Ministry will adjust a bill on tax benefits in special administrative regions of Russia in the wake of a tax agreement with Cyprus, the ministry said in a statement late on Monday quoting Deputy Finance Minister Alexei Sazanov.

Earlier in August, the ministry published amendments to the Tax Code that cut the dividend tax for non-public international holding companies that are residents of the regions to 5% from 15%. It deleted the bill later.

“The Finance Ministry has prepared an array of measures in the past several months to change income taxation paid abroad in line with the orders of the Russian president. We launched the process of revision of agreements on avoidance of double taxation with several countries, and we prepared amendments to improve the existing tax legislation in the special administrative regions to make these jurisdictions more attractive for switching of foreign holding institutions to Russia,” Sazanov said.

“Taking into account all amendments in income taxation paid abroad, we have to look into it as a whole and Cyprus has recently agreed with our suggestions of changes to the agreement on avoidance of double taxation. Amendments to the Tax Code on special administrative regions need further amendments and discussions with the business community.”

The authority will publish a new edition of the bill after amendments and coordination with the business, and the amendments will come in force on January 1, 2021, he said.

End %%md/jst%%