Russia’s Government has approved wording for a draft Protocol that it will seek to conclude with Malta, to revise their double tax agreement to increase withholding tax rates at source for cross-border dividends and interest income.
The terms are set out in Russian in Order No. 2291 2020, which has been approved by Russia’s Cabinet which are in line with the Protocol signed with Cyprus earlier this month, Russia will seek to increase the withholding tax rate on dividends and interest income to 15%. A reduced 5% rate will apply in exceptional circumstances, the Russian Government said. Russia is reviewing its network of double tax agreements (DTAs) to identify those agreements that do not permit taxation at source of dividends and interest income at least a 15% tax rate.