Lavrov Discussed with the Head of Cyprus Foreign Ministry Cooperation in Field of Taxation
"An exchange of views took place on topical issues in bilateral relations, including cooperation in the field of taxation in the light of the decision of the President of Russia to ensure an appropriate level of taxation of all types of income that are transferred abroad to offshore jurisdictions", the ministry said, adding that the conversation was initiated by the Cypriot side.
The foreign ministers also examined the situation in both countries in connection with the spread of a new coronavirus infection. The Russian Embassy in Nicosia on the eve handed over to the Cypriot authorities a letter amending the treaty on avoidance of double taxation.
On March 25, Russian President Vladimir Putin proposed raising the tax rate on dividends that are transferred abroad to offshore jurisdictions from 2% to 15%. This measure will require adjustments to double tax treaties with some countries. If foreign partners do not accept the new conditions, Russia will withdraw from such agreements unilaterally.