News Local Cyprus-Russia new double tax deal prevents costly rift

Cyprus-Russia new double tax deal prevents costly rift

Nicosia feels relieved now that Cyprus and Russia have agreed to amend their Double Tax Avoidance Treaty and to prevent a costly rift between the two sides, insiders told Philenews on Tuesday.

The most important aspect of the deal is that Cyprus no longer stands at a comparatively disadvantageous position, one also said.

Similar deals are expected to be reached between Russia and competitive countries such as Malta, Luxembourg and Holland.

Finance Minister Constantinos Petrides, himself,  said in a personal Twitter account on Monday after the talks in Moscow that “an important and mutually beneficial deal”.

Russia had set in motion the process for a unilateral abrogation of the agreement on August 3, saying that counter-proposal submitted by Cyprus did not offer ground for the amendment and renewal of the treaty to avoid double taxation.

The Finance Ministry said in a written statement late on Monday that “the updating of the existing network of double tax agreements in line with international developments is a priority for the Government.”

The statement said that the Russian side demanded the amendment of two fundamental articles of the treaty, so as to increase the tax on incomes from dividends and interests from 5 percent to 15 percent.

“The Cyprus side secured, among others, the reduction of the said withholding tax (to nil or 5% as appropriate) of regulated entities, such as pension funds and insurance undertakings as well as listed entities with specific characteristics,” the statement also said.

It added that exemption from the said withholding tax applies to interest payments from corporate bonds, government bonds and Eurobonds.

The aim of the two sides is for the agreement to be signed this autumn, so that it will come into force on January 1, 2021, said the statement.


Top Stories

162 new cases, five deaths announced on Monday

The Health Ministry announced the death of five persons due to COVID-19. This raises the death toll from the virus in Cyprus to 175,...

Where to get antigen rapid tests on Tuesday

The Health Ministry announced the following antigen rapid test sites for Tuesday, 19 January 2021: LIMASSOL Apostle Loucas Church, Agios Athanasios 08:30-16:30 Agios Stylianos Church, Linopetra 08:30-16:30 Cultural...

Searches for 70 year old woman missing at sea suspended due to bad weather

Searches to find a 70 year old woman missing off the Phiikoudes beach in Larnaca have been suspended due to extremely bad weather conditions...

Tourist arrivals plunge by 84% in 2020 in one of Cyprus’ worst tourist seasons due to Covid

Tourist arrivals in Cyprus reached a mere 631,609 plunging by 84.1% year on year in one of the worst ever season for Cyprus’ tourist...

Germany demands release of Kremlin critic Navalny

Germany on Monday demanded the release of Kremlin critic Alexei Navalny, detained on Sunday on his return to Russia, and said it would discuss...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...