As published on urdupoint.com, Friday 11 September, 2020.
MOSCOW (UrduPoint News / Sputnik - 11th September, 2020) Russia and Malta will revamp their double taxation avoidance convention, the tax on dividends and interest will be increased to 15 percent, the Russian cabinet said on Friday.
"The government has approved a draft protocol on introducing amendments to the double taxation avoidance convention with Malta. Amendments include the increase of the source's tax on dividends and interest to 15 percent. Prime Minister Mikhail Mishustin has signed a relevant decree," the Russian cabinet said in a statement.
The draft protocol envisions several exceptions, for which a preferential regime, setting the tax at 5 percent, will be applied.
This will apply to institutional investment and public companies with at least 15 percent of shares in free circulation and those holding at least 15 percent of shares in companies repaying the above-mentioned income during a year. The exceptions are due to the fact that the Russian cabinet sees no risk of such taxpayers evading taxation.
Mishustin has tasked the Russian Finance Ministry with holding negotiations with Malta and signing a protocol that would amend the taxation deal.