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Changes to Russian-Cyprus Tax Treaty


Russian President Dmitry Medvedev signed Federal Law #9-ФЗ from February 28, 2012 “On Ratification of the Protocol for Introducing Changes to the Agreement between Russia and Cyprus for Avoidance of Double Taxation from December 5, 1998,” the Kremlin’s press-service announced.

The documents specify concepts in the existing Russian-Cyprus treaty such as “earnings from international transportation operations,” “dividends,” “interest,” and also defines the terms of taxation of income from them. The document also clarifies taxation of profits received from real estate investments.

Moreover, the amended document limits and nullifies tax benefits for those entities created with the purpose of receiving such tax benefits, if such is proven by the appropriate authorities of the two countries. It also changes the procedures for information exchange between the Russian and Cyprus tax authorities.

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