Ukraine Wins in a $3 billion Lawsuit over a Eurobond Default
In a recent legal development, Ukraine has won in a lawsuit filed against it by Russia in the…
News added 11.08.2020
In March this year president of Russian Federation proposed imposing a 15% withholding tax on all interest and dividend payments leaving the country, starting in 2021.
By now Cyprus, Malta, Luxembourg and Netherlands have received the formal letters requesting to amend the bilateral agreements for avoidance of double taxation (DTT),and raise withholding tax rates accordingly.
Negotiations with Cyprus resulted in full acceptance of proposed amendments to the DTT. The new protocol is expected to be ratified by the end of 2020 and effective starting January 1, 2021.
According to the recent update by the Russian Finance Ministry, Malta and Luxembourg have also agreed to amend the DTTs with Russia and raise withholding tax rate on virtually all interest and dividend payments to 15 %. It is planned to complete negotiations in the coming month on the same terms offered to Cyprus.
Similar notice has been recently issued to Netherlands. Contrary to the DTT between Russia and Cyprus, the existing DTT with Netherlands provides the exemption from witholding tax on the income from the sale of shares / stakes in Russian real estate companies.