Russia begins the process of denunciation of the agreement on avoidance of double taxation with Cyprus, the Russian Finance Ministry announced.
Negotiations on its revision have not led to the result.

“In order to fulfill the order of the Russian President on taxation of dividend income and interest paid from the territory of the Russian Federation to the Republic of Cyprus at a rate of 15%, the Russian Ministry of Finance on August 3 this year begins the process of denunciation of the agreement,” – the message says.

The idea to cancel preferential tax rates for those who transfer their income to foreign accounts was suggested by President Vladimir Putin on March 25. He stressed that Russia will unilaterally withdraw from the agreements with those countries, which will not accept her proposals.

After the withdrawal from the agreement with Cyprus, all payments (dividends, interest, royalties) in favor of Cypriot residents – citizens of Russia will be taxed in accordance with the Russian Tax Code, at a rate of 15% (dividends) and 20% (interest, royalties).

Source: RBK