Cyprus and Russia have just agreed on an amendment of the double taxation agreement between the two countries. The Russian government assured the withdrawal of the termination procedures of the Convention.
The exemption from a 15% withholding tax on dividends for regulated entities, such as pension funds and insurance companies, as well as listed companies will apply.
Furthermore, interest payments from corporate and government bonds as well as Eurobonds are excluded from the 15% withholding tax in the new Cyprus Russia Double Tax Treaty.
Any other type of Cyprus-based entities will still be able to avoid double taxation, although at a higher rate of 15%.
The same regulations will apply to other countries that maintain similar agreements from the same date that will apply to Cyprus (1/1/2021).