Cyprus and Russia to suspend the implementation of Article 13 for the avoidance of double taxation

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The Treasury in Cyprus announced last week that it had reached an agreement between Russia and Cyprus authorities for the effective suspension of the Protocol application for amending Article 13.
The Agreement concerns the Republic of Cyprus and the Russian Federation for the Avoidance of Double Taxation, with respect to taxes on income and capital, as previously signed on October 7th 2010.

The amendment to Article 13 provides for taxation of gains arising from the sale of company shareholdings that derive more than 50% of their value from immovable property, in the country where the immovable property is located.

Simultaneously, this has promoted the preparation of a supplementary Protocol through which the revised provisions of Article 13 of the above Agreement will be suspended until the introduction of uniform provisions in other bilateral Double Tax Agreements with other European countries.