UPDATE: Russia, Cyprus sign amendments to double taxation avoidance deal

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NICOSIA, Sep 8 (PRIME) -- Russian Foreign Minister Sergei Lavrov and his Cypriot counterpart Nikos Christodoulides have signed a protocol on amendments to a double taxation avoidance deal between the states, according to information obtained by PRIME at the signing ceremony on Tuesday.

In March, Russian President Vladimir Putin suggested imposing a 15% tax on dividend yields withdrawn to accounts in foreign jurisdictions, which needs adjustments to agreements on avoidance of double taxation with other countries.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.

Director of the Finance Ministry’s tax and customs policy department Alexei Sazanov said that a preferential tax rate of 5% under the new agreement will be applied to no more than 10% of companies.

Sazanov also said that the Finance Ministry is in talks with the Netherlands on amendments to a double taxation avoidance agreement, and expects the state’s answer until the end of September.

Russia has not yet sent requests to adjust the taxation agreements with Hong Kong and Switzerland, and they are still discussed by the Russian government, the official added.

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