Cyprus-Russia Protocol ratified by Russian Duma

On Feb 15th, 2012, the Russian Duma finally ratified the amending Protocal to the Cyprus-Russia Double Tax Treaty of 1998, signed on Oct 7th, 2010. Cyprus had ratified this Protocal earlier in August 2011. According to experts, Russia was waiting to ratify in order to make sure they were prepared for the procedures for information exchange between the two countries that this Protocol would permit. By ratifying this Protocal Cyprus has been removed from the Russian “black” list.

The Protocal is just coming into force now and it is hard to predict at the moment the real effect this will have. According to expert opinions, Cyprus understands that Russia is the main investor in their economy and therefore they intend to protect all the investments in the country. Russian investors should understand that the disclosure of the information would only follow after an official enquiry from the Russian Tax Authorities and also that the procedure is not straight forward.

Taking into consideration that Cyprus regards Russia as its main investor and will protect Russian investor’s interest, it is important to also recognize the benefits of Cyprus now being taken off the “black” list of the Russian Federation. Now it will be allowed for dividends paid from Cyprus tax resident companies and received from the Russian corporate shareholders to qualify for the Russian participation exemption and thus be exempt from Russian tax. This is expected to create new opportunities for Russian investors for the use of Cyprus companies and funds as a gateway to Europe, Asia and Africa.


Cyprus important updates cyprus investment firm holding structures key benefits procedures fee schedule taxation compliance trading company holding company voluntary wind-up double taxation treaties work permit immigration permit Singapore key benefits procedures fee schedule taxation compliance double taxation treaties EPass-EntrePass Hong Kong key benefits procedures fee schedule taxation compliance double taxation treaties Russia key benefits procedures taxation fee schedule Mauritius key benefits procedures fee schedule taxation China key benefits procedures fee schedule taxation RAK key benefits procedures fee schedule taxation Indonesia key benefits procedures fee schedule taxation Belize key benefits procedures fee schedule taxation belize offshore trusts Cayman Islands key benefits procedures fee schedule taxation BVI key benefits procedures fee schedule taxation Panama key benefits procedures fee schedule taxation Seychelles key benefits procedures fee schedule taxation UK LTD key benefits procedures fee schedule taxation UK LLP key benefits procedures fee schedule taxation Delaware key benefits procedures fee schedule taxation France procedures fee schedule Switzerland procedures fee schedule key benefits taxation Gibraltar procedures fee schedule taxation


	© 2004 - 2012 \| Eltoma Corporate Services		Home :: Maps