Double Tax Treaty (DTT) Russia – Cyprus, update
The current DTT Russia – Cyprus is in force, however the discussions continue and will most likely be concluded this month by both countries.
Last April the Russian Government requested the revision of the DTT between Cyprus and Russia. Since then, our Ministers of Finance and Foreign Affairs of Cyprus, are in continues communication with all applicable bodies in order to renegotiate the revise DTT and are doing the utmost to find the best possible solution.
The Russian government has requested an amendment to the DTT with Cyprus so as to increase to 15% the withholding tax rates on dividend and interest payments from Russia to Cyprus.
Based on the current provisions of the DTT between Russia and Cyprus:
· The withholding tax on dividends paid by a Russian company to a Cypriot resident company or individual is 5% if the Cypriot resident has directly invested at least Euro 100.000 in the capital of the Russian company. The withholding tax is 10% in all other cases.
· The withholding tax on interest arising in Russia and paid to a Cypriot resident is 0%.
In accordance with Russian domestic legislation, in the absence of an applicable DTT, the withholding tax on dividends paid abroad is 15% and the withholding tax on interest is 20%.
We hope that the proposals submitted by our Ministers of achieving certain exceptions to the applicability of the 15% tax rate will be accepted by the Russian Authorities and the revise DTT will not create any substantial issues for the smooth operations of the companies.
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.
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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.