Tax treaties with Cyprus and Luxembourg were revised

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Federal laws were adopted to ratify the protocols for amending the Double Taxation Treaties with Cyprus and Luxembourg with respect to taxes on income and capital.

According to the documents, the base tax rate for the payment of dividends and interest by Russian companies to Cyprus and Luxembourg rises to 15%.

At the same time, a 5% preferential rate is provided for institutional investments, as well as for public companies (at least 15% of the shares in free float), if they owned at least 15% of the capital of the company paying the income for at least a year.

In addition, the new rules will not affect income in the form of interest paid on Eurobond loans, bond loans of Russian companies and loans provided by foreign banks.

The protocols came into force on January 1, 2021.