During the negotiations held in Moscow last Monday, Cyprus accepted the proposal of the Russian side to raise to 15% the tax rate on interest and dividends from Russia.

Minister of Finance of the Republic of Cyprus Konstantinos Petridis said yesterday that the parties had reached an agreement.

The Cypriot delegation fully accepted the conditions of the Russian side. The ratification of the protocol should take place by the end of 2020. And the new rules will come into force from January 1, 2021.

During the negotiations Cyprus managed to maintain preferential rates (0 and 5%) for insurance companies and pension funds, as well as companies whose shares are traded on the exchange.

Also, zero tax will be maintained on interest payments on corporate government bonds and Eurobonds, as well as on royalties.

Source: RBC