Cyprus finally accepted Moscow’s offer to raise the tax rate on interest and dividends from Russia to 15%. Russia and Cyprus have decided to change the agreement on the avoidance of double taxation. The consensus was reached during the final round of talks in Moscow.
Cyprus has achieved the preservation of benefits (rates of 0 and 5%) for insurance companies and pension funds, as well as companies whose shares are traded on the stock exchange.
In addition, the exemption from tax on interest payments on corporate bonds, government bonds and Eurobonds will remain. There will also be zero tax on royalties.
Now the process of denunciation has been stopped due to the achievement of a compromise.