During the past few months, it was highly under discussion the matter raised by the Russian President, Vladimir Putin for the changes he is willing to make in the Russian Double Tax Treaties with various countries by increasing the withholding taxes on dividends and interests to 15%.

On the 10^th of August, after extensive negotiations the Cypriot Minister of Finance requested and ensured the exemption of the 15% withholding taxes on the below:

• Dividends for regulated entities, such as pension funds, insurance companies and listed companies
• Interest payments from corporate and government bonds as well as Eurobonds

Russia and Cyprus are looking forward to sign the new Agreement by Autumn 2020 and implement it on 1^st January 2021.

The Russian side assured to Cyprus that the same regulations will apply to all countries with similar agreements from the same date that will apply to Cyprus (01/01/2021) since it is a single fiscal and taxation policy aimed at raising public funds. Already Malta and Luxembourg have agreed to amend their respective DTTs with Russia and raise the tax rates on interest and dividends from Russia to 15%. Additionally, Netherlands have received a proposal from the Russian Federation to amend the current DTT with the same terms as Cyprus, Luxembourg and Malta.

In conclusion, we are waiting for further clarifications from the government since there are some deficiencies in the report provided by the government regarding the exceptions provided by the new agreement.

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