Amendment of Article 13 of the Cyprus-Russia Double Tax Treaty
The Government of Cyprus and Russia came to an agreement for postponing the application of the Protocol amending Article 13 of the Double Tax Treaty between Cyprus and Russia for the Avoidance of Double Taxation with respect to taxes on income and on capital.
The Protocol, which was signed on 7th of October 2010, provided for taxation of capital gains upon disposal of shares of companies deriving more than 50% of their value from immovable property, in the country where the immovable property is located.
As per the Ministry’s of Finance announcement a new protocol is to be signed to implement the revised provisions of Article 13 until similar provisions are introduced in other bilateral agreements between Russia and other European countries.
Cyprus and Russia have historically developed strong ties in political, economic, cultural and religious level. Russia is one of the Cyprus’ major economic partners and the abovementioned agreement will strengthen even more their business and economic relations.