Russian Duma Approves Changes To Luxembourg And Cyprus DTAs

by Lorys Charalambous, Tax-News.com, Cyprus

01 January 2021

At its December 22 plenum, Russia's lower house of parliament approved revisions to the country's double tax agreements with Cyprus and Luxembourg.

Both double tax agreement Protocols would increase the rate of withholding tax that may be levied at source by Russia on outbound dividends and interest income to 15 percent.

A five percent rate of tax will apply to institutional investments, as well as to public companies with at least 15 percent of shares in free float and holding at least 15 percent of the share capital in the company paying the income during the year, the Russian Government has said.

There will also be a withholding tax exemption for interest payments from corporate bonds, government bonds, and Eurobonds.

The Russian Government is seeking to have both Protocols approved before the end of the year so that the revised agreements may apply from January 1, 2021.

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