°
Newark

The MFA hopes for a productive dialogue with the Cyprus double tax Treaty

Moscow hopes for a productive dialogue with Cyprus and the development of acceptable solutions on the issue of amending the agreement on avoidance of double taxation, said in an interview with RIA Novosti Director of the Fourth European Department of the MFA of Russia Yuri Philipson.

"In accordance with the instructions of the leadership of the country's Ministry of foreign Affairs together with the Ministry of Finance instructed to determine the list of international treaties of the Russian Federation on avoidance of double taxation and to ensure that the changes providing for taxation at the rate of 15% of income in the form of dividends and interest paid to non tax residents of the Russian Federation", - said the diplomat.

Cyprus is among those countries with which Russia has a similar agreement, "and he, as you know, owns a significant share in the total volume of dividends from Russia abroad." In this regard, the Russian side handed over to the Cypriot partners, the draft additional Protocol to the intergovernmental agreement on the avoidance of double taxation with respect to taxes on income and on capital from 1998 (as amended 2010).

"Consultations are under way, it's been three rounds. While the current articles of agreement and established international practice allow you to terminate the agreement if the agreement fails. However, we look forward to a productive dialogue and mutually acceptable solution", - said the diplomat.

Russia in early April sent to the Ministry of Finance of Cyprus the letter with the requirement to modify the agreement on avoidance of double taxation and requesting a response by June 15. The Russian authorities want to tax at 15% income dividends transferred to accounts abroad, but this requires an adjustment of agreements on avoidance of double taxation concluded by the Russian Federation with other countries. The parties agreed on June 25 teleconference to discuss the third round of talks was held on 9 July.