Russia surprises Cyprus with move to scrap tax deal

4 August 2020
239 Views

Russia’s finance ministry said on Monday it would scrap an agreement with Cyprus aimed at avoiding double taxation after talks to modify the deal failed, a decision that surprised Cyprus, which said talks were still under way.

Russia suggested the move could encourage Russian businesses registered on the island to transfer soon-to-be unprofitable holding structures back home. Any significant exodus would be a blow for the Cypriot economy.

The Mediterranean island, with its light regulation, use of English law and double taxation treaty with Moscow, has been an important destination for Russian entrepreneurs and firms.

But with Russia’s economy bruised by low oil prices and the COVID-19 pandemic, President Vladimir Putin in March proposed a 15% tax on all interest and dividend payments leaving Russia to combat capital outflows, to start from Jan. 1, 2021.

At the time, he warned that Russia would unilaterally withdraw from agreements with foreign partners who did not accept its suggestions.

Source: Reuters

You may be interested

Covid-19 Greece – 566 new cases and 30 deaths on Tuesday
GREECE
shares19 views
GREECE
shares19 views

Covid-19 Greece – 566 new cases and 30 deaths on Tuesday

makis - Jan 20, 2021

The Greek authorities announced 566 new cases of the new coronavirus infection (COVID-19) Tuesday, of which 17 were identified after…

Mitsotakis: Our seas are doubling – We reserve the right to expand our territorial waters in Crete & elsewhere
GREECE
shares23 views
GREECE
shares23 views

Mitsotakis: Our seas are doubling – We reserve the right to expand our territorial waters in Crete & elsewhere

makis - Jan 20, 2021

“We reserve the right to extend the territorial waters in Crete and elsewhere when we choose”, said the Greek Prime…

The award-winning Greek designer of Alfa Romeo
GREECE
shares27 views
GREECE
shares27 views

The award-winning Greek designer of Alfa Romeo

Panos - Jan 20, 2021

From the city of Kozani in Macedonia, Greece, to the world-renowned designing building of a global car manufacturer, Alfa Romeo,…

Leave a Comment

Your email address will not be published.