OREANDA-NEWS. Russia and Cyprus have agreed to amend the treaty on the avoidance of double taxation. Consensus was reached during the final round of talks in Moscow. Cyprus Finance Minister Konstantinos Petrides announced this on Twitter. Later this information was confirmed by the Russian Ministry of Finance.

“The Cypriot delegation fully agreed with the terms of the Russian side. We have initialed the draft protocol to be signed in September 2020,” Deputy Prime Minister of Russia, Aleksey Overchuk, said. The ratification of the protocol should take place before the end of 2020, and it will enter into force on January 1, 2021.

In April, the Ministry of Finance of Russia proposed to Cyprus to abolish all benefits on tax on dividends and interest – the toughest option for changing the agreement. On August 3, the agency reported that the Cypriot authorities did not agree to the option offered by Russia, and in response put forward their own proposals. Therefore, Moscow announced the beginning of the denunciation process for the treaty.

In connection with reaching an agreement, Deputy Finance Minister of Russia, Aleksey Sazanov, stated that the process of denunciation was stopped. “In the coming month, we also plan to complete negotiations with Luxembourg and Malta on the same terms as we offered Cyprus,” the politician added.