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Russia and Luxembourg signed a protocol to amend the agreement on the avoidance of double taxation between them

On November 6, a protocol was signed to amend the agreement on the avoidance of double taxation between Russia and Luxembourg.

The tax rate was increased to 15 % for income in the form of dividends and interest.

The Protocol defines a list of exceptions, according to which a preferential rate of 5% will be applied to income in the form of dividends and interest. The list of exceptions is similar to already signed agreements with Cyprus and Malta.

Exceptions are provided for institutional investments, as well as for public companies that have at least 15% of their shares in free circulation and own at least 15% of the capital of the company paying the specified income during the year.

The changes will not affect interest income paid on Eurobonds, bond loans of Russian companies, as well as loans provided by foreign banks.