Russia to raise dividend tax '21 only for transit jurisdictions

MOSCOW, Mar 27 (PRIME) -- Russia plans to raise the tax on dividend and interest income in 2021 only in case of its withdrawal to accounts in transit jurisdictions, such as Cyprus, the Finance Ministry said in a statement late on Thursday.

President Vladimir Putin proposed in an address to the people on Wednesday to introduce a 15% tax on dividend and interest income withdrawn to banking accounts on foreign jurisdictions.

The Finance Ministry said, "The changes planned in part of increase of the tax rate on income from dividends and interest will only cover so-called transit jurisdictions."

The changes will not be retroactive and will enter in force on January 1, 2021. The changes in legislation will not cover revenue from Eurobonds, bonds of Russian companies and loans from foreign banks.

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