OREANDA-NEWS. Russia is starting the process of denouncing the double taxation agreement with Cyprus.

This was reported by the Russian Ministry of Finance. It is noted that Nicosia did not agree to the proposed increase in tax rates on payments to Cyprus. “In June–July of this year, we negotiated with our Cypriot colleagues regarding the revision of the agreement to avoid double taxation between Russia and Cyprus, so that from January 1 next year, most of the payments of interest and dividends from Russia to Cyprus would be taxed at the source according to rate of 15 %. Unfortunately, today we must admit that the negotiations have not yielded results,” Deputy Finance Minister Aleksey Sazanov explained.

In April, the Russian Ministry of Finance proposed to Cyprus to abolish all tax benefits on dividends and interest. In response, the Cypriot authorities put forward their own proposals.

Moscow offered to hold face-to-face talks in Cyprus this week to find a compromise solution, but was refused, the Ministry said.