Cyprus-Russia DTT Revised
As of 1 January 2021, the withholding tax on dividends and interest paid from Russia to Cyprus will increase to 15% with certain exemptions, regarding regulated entities and certain types of interest on corporate bonds, government bonds and Eurobonds.
Cyprus Russia Double Tax Treaty (DTT) and the revised protocol will be signed in September.
It’s our understanding that similar request letters, for an increase of withholding tax rates on dividends and interest to 15%, have been sent to Malta, Luxembourg and the Netherlands and will be sent to other countries as well. This creates the potential for a level playing field. The intention of the Russian side is for changes in the treaties with all countries to be effective as of 1 January 2021.
Following the above, Cyprus should continue to have in place an effective DTT with the Russian Federation and that Cyprus should not find itself at a disadvantage compared to other European countries.
We will communicate to you details of these exemptions once the protocol is signed.
Philippos Hadjizacharias
Managing Partner-ITP expert
PHS & Partners Ltd
17/08/2020
PHS & Partners’ team of professionals are focused on delivering the best results to every company and group of companies to minimize tax exposure / liability without any uncertainties.
Contact us to help you find out how you can best handle your business.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in this contact form.
We will analyze your case and advice you on:
- What company structure suits you best,
- What is the best Tax solution(s) for your business,
- What Banking and cash flows arrangements available.
We will take you through a step by step process from A to Z in creating the perfect business in Cyprus.
Can’t wait any longer? Fill in the form and submit your inquiries make your first step and we will deal with the rest.
Become even more successful by working with accountants you can count on and be among the thousands that already did.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in the contact form below.
We will take you through a step by step process from A to Z in creating the perfect business structure in Cyprus.
Can’t wait any longer? Become even more successful by working with accountants you can count on and be among the thousands business that already did.