Russian Duma ratifies protocol to officially remove Cyprus from Russia's Black List

On Wednesday, 15 February 2012, the Russian Duma ratified a Protocol amending the Cyprus-Russia Double Tax Treaty of 1998. The Protocol is now ratified by both signatories, as Cyprus already ratified the Protocol back in September 2011.

These are good news as Cyprus will now be officially removed from the Russian ‘Black List’, and with the protocol being effective from 1 January 2013, dividends paid out by a Cypriot company can be received in Russia totally exempt from taxation if certain conditions apply.

Another important change is a special mechanism for the exchange of information between the tax authorities of both states. The Article 26 (exchange of information) of the Protocol is essentially identical to the OECD’s Model Tax Convention on Income and Capital and can be found in all modern tax treaties.

This new development is expected to greatly enhance business between Cyprus and Russia and thus further reinforce the economic and cultural ties between the two nations.