Russia and Malta have agreed to increase the tax rate on dividends and interest to 15%, the Russian Finance Ministry said on Friday
MOSCOW (Pakistan Point News / Sputnik - 14th August, 2020) Russia and Malta have agreed to increase the tax rate on dividends and interest to 15%, the Russian Finance Ministry said on Friday.
"On August 13, 2020, the competent authorities of Russia and Malta agreed on a draft protocol on amending the Convention between the government of Russia and the government of Malta for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income ... and agreed to increase the tax rate at source for income in the form of dividends and interest to 15 percent with exceptions for a limited list of institutional investments," the ministry said in a statement.
In late March, Russian President Vladimir Putin ordered a 15 percent tax on income in the form of dividends and interest transferred to accounts abroad. This requires adjusting agreements with other countries to avoid double taxation. The president warned that Russia would unilaterally withdraw from such agreements with countries that would not accept its proposals.
The Russian Finance Ministry sent corresponding notifications first to Cyprus, and then to Luxembourg, Malta and the Netherlands. Earlier, Russian Deputy Prime Minister Alexei Overchuk said that proposals to revise tax agreements could be sent to Switzerland and Hong Kong.
