Cyprus Suggests Amendments to New Version of Taxation Agreement With Russia

Authorities of Cyprus made a proposal to Russia to introduce a series of amendments to the new version of the double taxation avoidance agreement but the Russian side has not yet accepted them, a source in the Cyprus’ government told TASS on Friday.

“Representatives of the Cyprus’ Ministry of Finance requested making several exceptions in the new agreement version and exempt from higher taxes state-run companies, enterprises with securities listed on the exchange and legal entities, whose operations are supervised by investment groups. However, the Russian side considered that the suggested range of companies is too broad,” the source said.

No official confirmation for this piece of information was received from the Russian side, TASS adds.

The Cypriot side was also interested during talks regarding Russia’s intentions concerning new conditions for keeping the possibility of double taxation evasion in relation with such countries as Malta, Luxembourg and the Netherlands, the source noted.

The next round of the dialog between the two countries is scheduled in the beginning of the next week, the source added.

On March 25, Russian President Vladimir Putin suggested increasing the tax rate on dividends transferred abroad to offshore jurisdictions from 2% to 15%. This measure requires revision of double taxation agreements with certain countries, the head of state said and asked the Cabinet to organize such work.

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