Cyprus and Russia Amend the Tax Treaty

On the 7th of October 2010, the protocol to the Double Tax Treaty (DTT) between Russia and Cyprus was signed in Nicosia during the official visit to Cyprus by the president of the Russian federation, Mr Medvedev.

The Protocol amends 10 existing articles of the DTT and introduces a new one and it is very advantageous for business activities between Russia and Cyprus.

The effort made by the Cyprus Government to be excluded from Russia's black list of "Offshore Jurisdictions", has been unofficially ratified by the signing of the Protocol which makes sure the removal. The removal of Cyprus from Russia’s “Black List” is expected to be officially announced by the government of Russian Federation before the end of the current year.
The provisions of the Protocol will come into force as from 1st January 2011, except for the provisions which relate to Capital Gains, as described below, which will come into force as from January 2015.