New tax treaty between Russia and Cyprus
New tax treaty between Russia and Cyprus

New tax treaty between Russia and Cyprus

On Monday, August 10, Russia and Cyprus agreed on a new tax agreement against double taxation, amending the agreement concluded more than twenty years ago.

The Russian-Cypriot tax treaty, which came into force in 1998, allows wealthy Russian citizens living on a Mediterranean island, in particular, to pay tax on dividends at the rate applicable in their adopted country (5%), which is more beneficial than in Russia (15%). If the new agreement is ratified (by the end of 2020), the tax rate will be revised upwards.

Indeed, faced with an economic crisis combining a slowdown in activity due to the coronavirus and a collapse in oil prices, Moscow is looking for new sources of income. "The payment of profits to offshore accounts is extremely common and represents a significant deficit for the Russian state," said Mikhail Begunov, managing partner of Tax Compliance law firm.


You can view the full article in Le Courrier de Russie

Mikhail Begunov Mikhail Begunov

Mikhail Begunov

Major specialisations

Manufacturing companies, FMCG, Information technology, Pharmaceuticals

Member of the Chamber of Tax Consultants, Lawyer at the Moscow Chamber of Advocates