Russia has ratified the Protocol of DTT
The Protocol to the 1998 Double Tax Treaty between Cyprus and Russia signed during the Russian President’s official visit to Cyprus in 2010, has been ratified by the Russian State Duma on 15 February 2012. The Cyprus Government has already ratified the Treaty in September 2011. The Protocol is now pending the signature of the Russian President, Dmitry Medvedev. Once it has been signed, in accordance with the provisions stipulated by the Protocol itself, it shall come into effect as of 1 January 2013 (with some provisions that will have effect from 1 January 2017).
Ratification of the Protocol will result in the removal of Cyprus from the Russian “blacklist” of offshore jurisdictions. This would mean that dividends received by Russian companies from Cypriot subsidiaries can qualify for the Russian dividend participation exemption that will further strengthen the position of Cyprus as one of the most attractive jurisdictions for Russian investment.
For more analysis of the key amendments to the Double Tax Treaty you can find in our Tax Updates.