Russia and Luxembourg signed a new tax agreement

Russia and Luxembourg signed a protocol to amend the agreement on the avoidance of double taxation in terms of increasing the withholding tax rate to 15% in respect of income in the form of dividends and interest. This was reported by the Ministry of Finance.

It is noted that the ratification of the protocol must take place before the end of the year, so that its provisions begin to apply from January 1, 2021.

The protocol defines a list of exceptions when a preferential rate of 5% will be applied to income. This applies to institutional investments, as well as public companies that have at least 15% of the shares in free float and which own at least 15% of the capital of the organization during the year

In addition, the changes will not affect interest income on Eurobonds, bonded loans of Russian companies, as well as loans from foreign banks.

Negotiations are underway to amend the tax agreement with the Netherlands, the Finance Ministry said.

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