Russia and Cyprus signed a protocol to amend the treaty on avoidance of double taxation on Tuesday.

“The signing of the protocol guarantees the continuation of the double tax treaty, which is undoubtedly beneficial for both parties, as it stimulates investment, trade in all sectors of the economy, as well as the labor market,” said Finance Minister Konstantinos Petrides.

The Protocol was signed by Cyprus Finance Minister Petrides and Russian Deputy Finance Minister Sazanov.

The Cypriot side ensured, among other things, a 15 percent tax exemption on dividends for regulated organizations such as pension funds, insurance and listed companies.

In addition, interest payments on corporate and government bonds, as well as on Eurobonds, are exempt from 15% tax in the new Cyprus-Russia Double Tax Treaty.

Any other type of Cyprus legal entity will still be able to avoid double taxation, but at a higher rate of 15 percent.

In addition to Cyprus, Malta and Luxembourg agreed to amend their DTT with Russia and raise the tax rates on interest and dividends from Russia to 15 percent.

Also the Ministry of Finance of the Netherlands has received a letter from the Russian Federation with a proposal to amend the current DTT on the same terms as Cyprus, Malta and Luxembourg.