On Tuesday, 8 September, Russia and Cyprus signed a protocol to amend the agreement on the avoidance of double taxation on income and capital taxes.

“The ratification of the protocol should take place before the end of this year, so that the provisions of the protocol will be implemented from 1 January 2021,” the Ministry of Finance of the Russian Federation informs.

The basis for withholding tax on dividends will be 15 per cent. However in some cases, the tax on dividends may be up to 5 per cent, if the person entitled to dividends is a foreign insurance company or pension fund, or a local authority or a central bank.