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HOME  /  NEWS  /  MOSCOW DEMANDS RENEGOTIATION OF THE DOUBLE TAXATION AGREEMENT BETWEEN CYPRUS & RUSSIA

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Moscow demands renegotiation of the Double Taxation Agreement between Cyprus & Russia

The Russian Deputy Finance Minister has officially informed Nicosia that the double taxation treaty between the two countries needs to be renegotiated, otherwise Russia will withdraw unilaterally.

Moscow’s goal is to have all interest and dividend payments leaving Russia to incur a 15% tax. Up until now, Cyprus incurred a 5% minimum tax rate on dividends. This will undoubtedly have a strong impact on Cyprus’ economy.

The relevant ministries in Nicosia acknowledge the seriousness of the issue and are requesting meetings at the highest political and technocratic level.

In the presence of Putin, Russian Prime Minister Mikhail Mishustin confirmed on Wednesday the formal request to Cyprus had been sent, expecting an agreement by April 24.