Russia agrees to talks with Cyprus after shock tax announcement

Russia’s Finance Ministry said on Friday it had agreed to a round of talks with Cyprus on Monday and Tuesday in Moscow over the fate of a bilateral agreement aimed at avoiding double taxation.

Russia, keen to reduce capital outflows, surprised Cyprus last Monday in announcing its intention to scrap the deal.

Cypriot officials had been under the impression the talks were continuing.

“Cypriot colleagues will once again be asked to agree to revise the withholding tax rates on interest and dividend payments to 15%, subject to certain exemptions for institutional investments,” Deputy Finance Minister Alexei Sazanov said in a statement.

[Reuters]