MOSCOW, Aug 7 – Russia’s finance ministry said on Friday it had agreed to a round of negotiations with Cyprus on Aug. 10-11 in Moscow over the fate of a bilateral agreement aimed at avoiding double taxation.
Russia, keen to reduce capital outflows, surprised Cyprus on Monday in announcing its intention to scrap the deal. Cypriot officials had been under the impression that 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.
He added that similar agreements with Malta and Luxembourg were no longer needed and those two countries had agreed to Russia’s proposals.
(Reporting by Darya Korsunskaya; Writing by Alexander Marrow Editing by Gareth Jones)