Russia agreed to negotiate with Cyprus on a tax agreement in Moscow on August 10 and 11, Deputy Finance Minister Alexey Sazanov told reporters
MOSCOW (Pakistan Point News / Sputnik - 07th August, 2020) Russia agreed to negotiate with Cyprus on a tax agreement in Moscow on August 10 and 11, Deputy Finance Minister Alexey Sazanov told reporters.
"Russia agreed to hold a round of negotiations with Cyprus in Moscow at the Russian Finance Ministry on August 10 and 11. Colleagues from Cyprus will once again be offered to agree to a revision of tax rates for interest and dividends to 15 percent, taking into account individual exemptions for institutional investments," Sazanov said.
In late March, Russian President Vladimir Putin ordered a tax of 15 percent on income in the form of dividends transferred to foreign accounts. 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 announced on Monday that it was starting the procedure for denouncing the agreement on the avoidance of double taxation with Cyprus, since the parties failed to agree. For Cyprus, the decision was unexpected. The Cypriot Finance Ministry said it expected to continue negotiations on the agreement.