Cyprus has agreed to Russia’s terms on raising the tax on dividend and interest to 15%, Russia’s Finance Ministry said in a statement on Monday.
"As part of the talks the Republic of Cyprus agreed to the terms of the Russian Federation on making changes to the Russian-Cypriot agreement on avoidance of double taxation regarding increase of the tax of the source to 15% on dividends and interest," the statement reads.
The protocol on changes to the tax agreement with Cyprus will take force starting 2021. "The protocol is to be ratified by the end of 2020, it will take force starting January 1, 2021," it runs.
In view of this, Russia is halting the earlier announced denunciation of the tax agreement with Cyprus.
Russia will offer the Netherlands the same conditions for the tax convention review as for Cyprus, the Russian Ministry of Finance said on Monday, TASS reports.
"Russia awaits a formal response from the Netherlands to communicated proposals for the tax agreement review. If the Netherlands consents to hold negotiations, it will be offered the same conditions as for the Republic of Cyprus," the Ministry says.