Cyprus Bows to Russian Demand, Agreeing to WHT on Dividends at 15%

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Cyprus Bows to Russian Demand, Agreeing to WHT on Dividends at 15%

It was expected that Cyprus would bow to the Russian demand to accept withholding tax (WHT) on dividends paid from Russia to Cyprus based holding companies of Russian businesses to 15% from current 5-10%. Nevertheless, Cyprus has managed to keep 0% WHT on royalties. Unfortunately, no official document is mentioning what will happen to interest payments under the Double Tax Avoidance Agreement between Cyprus and Russia. We still need to wait for more details to see the full picture.