MOSCOW, Oct 1 (PRIME) -- Russia and Malta have signed an accord to change their double taxation avoidance agreement to increase the tax to 15%, the Finance Ministry said in a statement on Thursday.
“On October 1, a protocol to amend an agreement on avoidance of double taxation between Russia and Malta to increase the tax to 15% at the source of income in the form of dividends and interest was signed,” the statement read.
Like in an agreement with Cyprus, the document exempts institutional investors and public companies with free floats of at least 15% that have owned at least 15% of capital of the company paying the income for at least a year. They will pay a 5% tax.
In March, Russian President Vladimir Putin suggested imposing a 15% tax on dividend yields withdrawn to accounts in foreign jurisdictions, which needs adjustments to agreements on avoidance of double taxation with other countries. Russia will cancel such agreements unilaterally if a consensus is not reached.
The Finance Ministry sent notifications to Cyprus first, and then to Luxembourg, Malta, and the Netherlands. Amendments to the accord with Cyprus have already been made, and the government coordinated them with Luxembourg. But negotiations with the Netherlands are difficult, Minister Anton Siluanov said earlier.
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