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Aki Corsoni-Husain
Aki Corsoni-Husain
  • Aki Corsoni-Husain

  • Partner
  • Cyprus
George Apostolou
George Apostolou
  • George Apostolou

  • Partner
  • Cyprus
Chiara Deceglie
Chiara Deceglie
  • Chiara Deceglie

  • Partner
  • Luxembourg
Massimiliano della Zonca
Massimiliano della Zonca
  • Massimiliano della Zonca

  • Senior Associate
  • Luxembourg
Philip Graham
Philip Graham
  • Philip Graham

  • Partner
  • British Virgin Islands
Ayana Hull
Ayana Hull
  • Ayana Hull

  • Counsel
  • British Virgin Islands
Katerina Katsiami
Katerina Katsiami
  • Katerina Katsiami

  • Associate
  • Cyprus
Petros Kiteos
Petros Kiteos
  • Petros Kiteos

  • Associate
  • Cyprus
Andrew Knight
Andrew Knight
  • Andrew Knight

  • Partner
  • Luxembourg
Joshua Mangeot
Joshua Mangeot
  • Joshua Mangeot

  • Counsel
  • British Virgin Islands
Mirza Manraj
Mirza Manraj
  • Mirza Manraj

  • Counsel
  • Hong Kong
Elina Mantrali
Mirza Manraj
  • Elina Mantrali

  • Associate
  • Cyprus
Vanessa Molloy
Vanessa Molloy
  • Vanessa Molloy

  • Partner
  • Luxembourg
Andrea Moundi Savvides
Andrea Moundi Savvides
  • Andrea Moundi Savvides

  • Consultant
  • Cyprus
Marina Stavrou
Marina Stavrou
  • Marina Stavrou

  • Associate
  • Cyprus
Matt Taber
Matt Taber
  • Matt Taber

  • Partner
  • Cayman Islands
Carolynn Vivian
Carolynn Vivian
  • Carolynn Vivian

  • Senior Associate
  • Cayman Islands

Cyprus and Russia agree in principle on renewal of the Double Tax Treaty

On 10 August 2020, The Cyprus Ministry of Finance announced the conclusion of extensive negotiations on the Agreement for the avoidance of Double Taxation between the Republic of Cyprus and the Russian Federation. 

The Cyprus side secured, among others, reduction of a withholding tax (WT) proposed earlier in the negotiations (to nil or 5 per cent as appropriate) of regulated entities, such as pension funds and insurance undertakings as well as listed entities with specific characteristics. In addition, exemption from WT applies on interest payments from corporate bonds, government bonds and Eurobonds. The Cypriot side also secured the maintaining of zero WT on royalty payments. The treaty can be utilised by all other types of Cyprus based entities with an increase of the WT on income from dividends and interest to 15 per cent respectively. 

Both sides concurred the Agreement to be signed in Autumn 2020 in order to apply as from 1 January 2021. 

The Russian side has confirmed that moving forward they would discontinue any actions aimed at terminating the treaty and that they would seek the same provisions with other countries with effective date also being January 2021, as this reflects Russia’s fiscal and tax policy to raise Government revenues. 

The official announcement can be found here.

This blog was co-authored by Theodoros Assiotis.