Russia agreed to hold a new round of negotiations with Cyprus to revise tax agreements. The discussion will take place on August 10 and 11. State Secretary, Deputy Minister of Finance Alexey Sazanov told reporters about this on Friday, August 7.
“The Cypriot colleagues will once again be asked to agree to revise the withholding tax rates on interest and dividends to 15%, taking into account individual exemptions for institutional investments,” he said.
The launch of the procedure for breaking the tax agreement with Cyprus became known on August 3. The Ministry of Finance explained that the corresponding decision was made due to the refusal to accept Moscow’s proposal to revise the agreement. Cyprus responded, but failed to reach a compromise.
On March 25, Russian President Vladimir Putin announced plans to raise rates for the withdrawal of capital abroad. In particular, he instructed the government to adjust the agreements on the avoidance of double taxation with countries where the income of Russians is transferred. At the same time, he stressed that Moscow will unilaterally withdraw from such treaties with those states that will not agree to increase taxes on dividends.
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