Russia Notifies Malta, Luxembourg about Dividend Tax Changes

The Russian Finance Ministry said on Monday it had informed Luxembourg and Malta of increasing to 15 percent the tax on dividend and interest income derived from Russia, TASS reported

“The Russian Finance Ministry has sent letters to the finance ministries of Luxembourg and Malta on introducing changes into the two-party agreements on avoiding double taxation in terms of increasing the tax rate on dividend and interest income to 15 percent,” the ministry said in a statement.

Russia has earlier sent a similar notification to Cyprus.

“The changes are introduced into the agreements on double taxation avoiding as part of the implementation of the Russian president’s order to increase the tax rate on dividend and interest income, transferred to foreign accounts,” the Finance Ministry explained.

Last month, Russian President Vladimir Putin proposed the introduction of an up to 15% tax on the transfer of dividends to overseas accounts.

Russia will withdraw from agreements unilaterally in case foreign partners do not accept new conditions, Putin cautioned.

“We will start from the countries, through which significant resources of Russian origin are passing, being the most sensitive for our country,” the Russian leader added.

Scroll to Top